Which cryptocurrencies are most influenced by the changes in major currency index?

3 answers

• Nov 24, 2021 · 3 years ago
  Cryptocurrencies are highly influenced by the changes in major currency indexes. When the value of major currencies like the US dollar or the Euro fluctuates, it has a ripple effect on the entire cryptocurrency market. However, some cryptocurrencies are more sensitive to these changes than others. Bitcoin, being the largest and most well-known cryptocurrency, tends to be the most influenced by major currency index fluctuations. Other popular cryptocurrencies like Ethereum and Ripple also tend to be affected. It's important to note that the influence can vary depending on the specific currency index and the overall market conditions.
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• Nov 24, 2021 · 3 years ago
  When it comes to the impact of major currency index changes on cryptocurrencies, it's a mixed bag. While some digital currencies are more closely tied to traditional currencies and are therefore more affected by their fluctuations, others are more independent and less influenced. Bitcoin, as the pioneer and dominant cryptocurrency, is often seen as the most influenced by major currency index changes. However, it's worth noting that the cryptocurrency market is highly volatile and influenced by various factors, so it's not a guarantee that all cryptocurrencies will be equally affected by changes in major currency indexes.
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• Nov 24, 2021 · 3 years ago
  At BYDFi, we have observed that the cryptocurrencies most influenced by changes in major currency indexes are typically the ones with higher trading volumes and market capitalization. This is because these cryptocurrencies are more widely traded and have a larger user base, making them more susceptible to market trends and external factors. However, it's important to remember that the cryptocurrency market is highly complex and influenced by multiple factors, so it's always recommended to do thorough research and analysis before making any investment decisions.
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