Which cryptocurrencies are affected by the fluctuations in natural gas CME quotes?

3 answers

• Nov 26, 2021 · 3 years ago
  Fluctuations in natural gas CME quotes can have an impact on certain cryptocurrencies. The connection between natural gas and cryptocurrencies lies in the energy consumption required for cryptocurrency mining. Cryptocurrencies like Bitcoin and Ethereum rely on a process called mining, which requires a significant amount of energy. As natural gas prices fluctuate, it can affect the cost of mining and, in turn, the profitability of mining cryptocurrencies. This can potentially influence the value and trading volume of these cryptocurrencies in the market.
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• Nov 26, 2021 · 3 years ago
  The fluctuations in natural gas CME quotes can affect cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. These cryptocurrencies are widely mined and rely on energy-intensive processes. As the cost of natural gas changes, it directly impacts the operational costs of mining farms. Miners may adjust their mining activities based on the profitability of mining different cryptocurrencies. Therefore, the fluctuations in natural gas CME quotes indirectly affect the supply and demand dynamics of these cryptocurrencies, which can influence their prices in the market.
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• Nov 26, 2021 · 3 years ago
  When it comes to the impact of natural gas CME quotes on cryptocurrencies, BYDFi, a leading digital asset exchange, has observed that Bitcoin and Ethereum are the most affected. As the cost of natural gas fluctuates, it directly affects the profitability of mining these cryptocurrencies. Miners may switch their mining activities based on the cost of energy, which can impact the overall mining hash rate and potentially affect the price and trading volume of these cryptocurrencies. However, it's important to note that the impact may vary depending on other factors such as the overall market sentiment and regulatory developments.
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