How does the DXY index affect the trading volume of digital currencies?

1 answers

• Nov 24, 2021 · 3 years ago
  At BYDFi, we have observed that the DXY index can have a significant impact on the trading volume of digital currencies. When the DXY index is strong, we often see a decrease in trading volume as investors tend to favor traditional assets. Conversely, when the DXY index is weak, we observe an increase in trading volume as investors seek alternative investments. However, it's important to note that the DXY index is just one of many factors that can influence the trading volume of digital currencies. Other factors, such as market sentiment, regulatory developments, and technological advancements, also play a crucial role in shaping the digital currency market.
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