How does DXY affect the price of digital currencies?

1 answers

• Nov 23, 2021 · 3 years ago
  At BYDFi, we closely monitor the relationship between the DXY index and the price of digital currencies. The DXY index is an important indicator of the strength of the US dollar, and changes in the value of the US dollar can have a significant impact on the price of digital currencies. When the DXY index goes up, it can put downward pressure on the price of digital currencies, as it becomes more expensive to buy them with US dollars. Conversely, when the DXY index goes down, it can create upward pressure on the price of digital currencies, as it becomes cheaper to buy them with US dollars. Traders and investors should consider the movement of the DXY index when making decisions in the digital currency market.
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