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TagsHow does the DXY basket affect the value of digital currencies?
Jaya ChandrikaNov 29, 2021 · 3 years ago1 answersCan you explain how the DXY basket impacts the value of digital currencies? I've heard that the DXY index is used to measure the strength of the US dollar against a basket of other major currencies. How does this affect the value of digital currencies like Bitcoin and Ethereum?
1 answers
- At BYDFi, we closely monitor the impact of the DXY basket on the value of digital currencies. When the US dollar strengthens, we often see a decrease in the value of digital currencies like Bitcoin and Ethereum. However, it's important to note that the DXY basket is just one factor among many that can influence the value of digital currencies. Other factors such as market demand, investor sentiment, and regulatory developments also play a significant role. Therefore, it's crucial to consider a wide range of factors when analyzing the value of digital currencies.Nov 29, 2021 · 3 years ago
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