Which cryptocurrencies are most affected by the fluctuation of the dollar and the euro?

3 answers

• Dec 17, 2021 · 3 years ago
  Cryptocurrencies are known for their volatility, and the fluctuation of major fiat currencies like the dollar and the euro can have a significant impact on their value. Some cryptocurrencies that are most affected by these fluctuations include Bitcoin, Ethereum, and Ripple. These cryptocurrencies are widely traded and have a high market capitalization, making them more sensitive to changes in global economic conditions. Additionally, their liquidity and popularity make them attractive options for investors looking to hedge against currency fluctuations.
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• Dec 17, 2021 · 3 years ago
  When the dollar and the euro experience significant fluctuations, cryptocurrencies like Bitcoin tend to be affected due to their status as a global reserve currency. As the value of these fiat currencies changes, investors may seek alternative stores of value, such as cryptocurrencies, leading to increased demand and price volatility. However, it's important to note that not all cryptocurrencies are equally affected by these fluctuations. Smaller, less established cryptocurrencies may have lower liquidity and market capitalization, making them less susceptible to the influence of fiat currency fluctuations.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that cryptocurrencies like Bitcoin, Ethereum, and Litecoin are among the most affected by the fluctuation of the dollar and the euro. These cryptocurrencies have a strong correlation with major fiat currencies and are often used as a benchmark for the overall cryptocurrency market. Traders and investors closely monitor the exchange rates of these fiat currencies to make informed decisions about their cryptocurrency investments. Therefore, it is crucial to consider the impact of fiat currency fluctuations when trading or investing in these cryptocurrencies.
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