Which digital currencies are most affected by fluctuations in EUR/USD rates?

3 answers

• Dec 17, 2021 · 3 years ago
  When it comes to digital currencies, Bitcoin (BTC) and Ethereum (ETH) are often the most affected by fluctuations in the EUR/USD rates. As the two largest cryptocurrencies by market capitalization, they tend to have a higher trading volume and are more widely traded against fiat currencies like the EUR and USD. When the EUR/USD rates fluctuate, it can have a significant impact on the value of BTC and ETH, as traders and investors adjust their positions based on the exchange rate. However, it's important to note that other cryptocurrencies can also be influenced by these fluctuations, albeit to a lesser extent.
  617309
• Dec 17, 2021 · 3 years ago
  Fluctuations in the EUR/USD rates can have a ripple effect on the entire cryptocurrency market. While Bitcoin and Ethereum may be the most directly impacted, other altcoins and tokens can also experience price movements as a result. This is because the EUR and USD are widely used as base currencies for trading digital assets. When the exchange rate between these two fiat currencies changes, it can affect the perceived value of cryptocurrencies traded against them. Therefore, it's crucial for cryptocurrency traders and investors to keep an eye on the EUR/USD rates and understand how they can impact the market.
  616206
• Dec 17, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that Bitcoin and Ethereum are indeed the most affected by fluctuations in the EUR/USD rates. As the exchange rate between the Euro and the US Dollar changes, it can create arbitrage opportunities for traders who can exploit the price differences across different exchanges. This can lead to increased trading volume and volatility for BTC and ETH. However, it's worth noting that other cryptocurrencies, such as Ripple (XRP) and Litecoin (LTC), can also be influenced by these fluctuations, although to a lesser extent. Therefore, it's important for traders to diversify their portfolios and consider the potential impact of EUR/USD rate changes on different digital currencies.
  735184