Which cryptocurrencies are most affected by fluctuations in the dollar's value in real?

3 answers

• Dec 16, 2021 · 3 years ago
  Cryptocurrencies such as Bitcoin and Ethereum are among the most affected by fluctuations in the dollar's value. As the dollar strengthens, the value of these cryptocurrencies tends to decrease, and vice versa. This is because many cryptocurrency investors use the dollar as a benchmark for their investments. When the dollar's value rises, investors may sell off their cryptocurrencies and convert them back into dollars, leading to a decrease in their prices. On the other hand, when the dollar weakens, investors may see cryptocurrencies as a more attractive investment, leading to an increase in their prices.
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• Dec 16, 2021 · 3 years ago
  Fluctuations in the dollar's value can also impact stablecoins, which are cryptocurrencies pegged to the value of a fiat currency, such as the US dollar. When the dollar's value decreases, the value of stablecoins may increase in order to maintain their peg. This can make stablecoins an attractive option for investors looking for stability during times of currency volatility. However, it's important to note that not all cryptocurrencies are equally affected by the dollar's fluctuations. Factors such as market demand, adoption, and overall market sentiment also play a significant role in determining the price movements of cryptocurrencies.
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• Dec 16, 2021 · 3 years ago
  From our analysis at BYDFi, we have observed that cryptocurrencies with smaller market capitalizations and lower trading volumes are generally more susceptible to fluctuations in the dollar's value. This is because they tend to have less liquidity and are more influenced by market sentiment. As a result, their prices can experience more significant swings in response to changes in the value of the dollar. However, it's important to conduct thorough research and consider multiple factors when making investment decisions in the cryptocurrency market.
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