Which cryptocurrencies are most closely correlated with the EUR/USD exchange rate?
Thorhauge HarveyDec 16, 2021 · 3 years ago3 answers
In the world of cryptocurrencies, which digital assets have the strongest correlation with the EUR/USD exchange rate? I'm interested in knowing which cryptocurrencies tend to move in sync with the fluctuations of the EUR/USD currency pair. Can you provide some insights into this correlation and highlight the cryptocurrencies that are most closely tied to the EUR/USD exchange rate?
3 answers
- Dec 16, 2021 · 3 years agoWhen it comes to cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) are often considered to have the closest correlation with the EUR/USD exchange rate. These two cryptocurrencies are widely recognized as the most established and influential in the market. As a result, their prices often reflect the overall sentiment and economic conditions of the global financial markets, including the EUR/USD exchange rate. However, it's important to note that correlation does not imply causation, and the relationship between cryptocurrencies and traditional currency pairs can be influenced by various factors.
- Dec 16, 2021 · 3 years agoIn addition to Bitcoin and Ethereum, other cryptocurrencies that have shown some level of correlation with the EUR/USD exchange rate include Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). These cryptocurrencies have gained significant popularity and market capitalization, which has led to increased attention and trading volume. As a result, their prices can be influenced by the overall market sentiment, including the fluctuations in the EUR/USD exchange rate. However, it's worth mentioning that the correlation between cryptocurrencies and traditional currency pairs can be dynamic and subject to change over time.
- Dec 16, 2021 · 3 years agoAccording to a recent analysis by BYDFi, a digital asset exchange, the cryptocurrencies that have the highest correlation with the EUR/USD exchange rate are Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). This analysis was based on historical price data and statistical modeling techniques. It's important to note that correlation does not imply a causal relationship, and the relationship between cryptocurrencies and traditional currency pairs can be influenced by various factors, including market sentiment, economic conditions, and regulatory developments.
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