Which cryptocurrencies are most affected by fluctuations in the dollar rate?

3 answers

• Dec 16, 2021 · 3 years ago
  When it comes to cryptocurrencies, the ones that are most affected by fluctuations in the dollar rate are usually the major ones like Bitcoin (BTC) and Ethereum (ETH). These cryptocurrencies have a high market capitalization and are widely traded against the US dollar. As the value of the dollar fluctuates, it directly impacts the prices of these cryptocurrencies. For example, if the dollar strengthens, the prices of BTC and ETH may decrease as investors sell off their holdings and seek safer assets. On the other hand, if the dollar weakens, the prices of BTC and ETH may increase as investors flock to these digital currencies as a hedge against inflation.
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• Dec 16, 2021 · 3 years ago
  Fluctuations in the dollar rate can also have an impact on other popular cryptocurrencies such as Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). While these cryptocurrencies may not be as directly tied to the US dollar as BTC and ETH, they are still influenced by the overall sentiment in the cryptocurrency market. If the dollar is performing well, it may signal a stronger economy, which could lead to increased investor confidence in cryptocurrencies as a whole. Conversely, if the dollar is weakening, it may raise concerns about the stability of the global financial system, leading to a flight to cryptocurrencies as a safe haven asset.
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• Dec 16, 2021 · 3 years ago
  According to a recent analysis by BYDFi, a digital currency exchange, the cryptocurrencies that are most affected by fluctuations in the dollar rate are Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). These three digital currencies have the highest trading volumes against the US dollar and are often used as a benchmark for the overall cryptocurrency market. As a result, any changes in the value of the dollar can have a significant impact on their prices and market performance. It's important for investors to closely monitor the dollar rate and its potential impact on these cryptocurrencies in order to make informed trading decisions.
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