Which cryptocurrencies are most affected by the fluctuations in DXY live?

3 answers

• Dec 27, 2021 · 3 years ago
  When it comes to the impact of DXY fluctuations on cryptocurrencies, it's important to consider the relationship between the US dollar and digital assets. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) tend to have an inverse correlation with the DXY. This means that when the DXY goes up, the value of BTC and ETH may experience downward pressure. On the other hand, when the DXY goes down, BTC and ETH may see an increase in value. However, it's worth noting that the correlation may not always be perfect, as other factors can also influence the price movements of cryptocurrencies.
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• Dec 27, 2021 · 3 years ago
  The DXY live fluctuations can have varying effects on different cryptocurrencies. For example, stablecoins like Tether (USDT) are designed to maintain a stable value against the US dollar. As a result, they are less likely to be significantly impacted by DXY fluctuations. On the other hand, altcoins and smaller cryptocurrencies may be more susceptible to the influence of DXY changes, as they often have lower liquidity and market capitalization. It's important for investors to closely monitor the relationship between DXY movements and the specific cryptocurrencies they are interested in to make informed trading decisions.
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• Dec 27, 2021 · 3 years ago
  According to our analysis at BYDFi, cryptocurrencies with strong ties to the US market and economy are generally more affected by DXY fluctuations. This includes cryptocurrencies like Ripple (XRP) and Litecoin (LTC), which have established partnerships with traditional financial institutions. These cryptocurrencies may experience more pronounced price movements in response to changes in the DXY. However, it's important to remember that the cryptocurrency market is highly volatile and influenced by various factors, so it's always recommended to conduct thorough research and consult with financial advisors before making any investment decisions.
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