Which cryptocurrencies are most affected by the daily exchange rate of dollar to euro?

3 answers

• Dec 28, 2021 · 3 years ago
  The daily exchange rate between the US dollar and the euro can have a significant impact on the value of cryptocurrencies. Cryptocurrencies that are most affected by this exchange rate include Bitcoin, Ethereum, and Ripple. These cryptocurrencies are widely traded against both the dollar and the euro, making them more susceptible to fluctuations in the exchange rate. When the dollar strengthens against the euro, the value of these cryptocurrencies may decrease, and vice versa. It's important for cryptocurrency traders to closely monitor the exchange rate between the dollar and the euro to make informed investment decisions.
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• Dec 28, 2021 · 3 years ago
  The influence of the daily exchange rate of the dollar to euro on cryptocurrencies varies depending on the specific cryptocurrency. While Bitcoin, being the largest and most widely traded cryptocurrency, is generally affected by the exchange rate, other cryptocurrencies may have different levels of sensitivity. For example, stablecoins like Tether or USD Coin are designed to maintain a 1:1 peg with the US dollar, so their value is not directly influenced by the exchange rate. On the other hand, altcoins with smaller market capitalization may be more influenced by the exchange rate due to their lower liquidity. Therefore, it's important to consider the characteristics of each cryptocurrency when assessing its sensitivity to the dollar to euro exchange rate.
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• Dec 28, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that cryptocurrencies with a higher trading volume and liquidity tend to be more affected by the daily exchange rate of the dollar to euro. This is because these cryptocurrencies are more actively traded against both currencies, resulting in a higher exposure to exchange rate fluctuations. Bitcoin, Ethereum, and Litecoin are examples of cryptocurrencies that are highly influenced by the dollar to euro exchange rate. Traders should keep a close eye on the exchange rate movements and consider the potential impact on these cryptocurrencies when making trading decisions.
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