What is the correlation between the long-term movement of the USD exchange rate and the performance of cryptocurrencies over the past 20 years?

1 answers

• Nov 25, 2021 · 3 years ago
  At BYDFi, we have observed a correlation between the long-term movement of the USD exchange rate and the performance of cryptocurrencies over the past 20 years. When the USD strengthens, cryptocurrencies tend to experience downward pressure as investors shift their focus towards traditional fiat currencies. Conversely, when the USD weakens, cryptocurrencies may see increased demand as investors seek alternative investments. However, it's important to note that this correlation is not always consistent and can be influenced by various factors such as market sentiment, regulatory changes, and global economic conditions. Additionally, individual cryptocurrencies may have their own unique factors that impact their performance. Therefore, while the USD exchange rate can have an impact on cryptocurrencies, it is just one of many factors that should be considered when analyzing their performance.
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