What is the correlation between AUD/CAD and cryptocurrencies?

3 answers

• Nov 23, 2021 · 3 years ago
  The correlation between AUD/CAD and cryptocurrencies is not a direct one. While there may be some indirect influences, such as the overall market sentiment affecting both AUD/CAD and cryptocurrencies, there is no strong causal relationship between the two. Factors like economic indicators, interest rates, and geopolitical events have a more significant impact on the AUD/CAD pair. Cryptocurrencies, on the other hand, are influenced by factors like market demand, regulatory developments, and technological advancements. So, while there may be some correlation between AUD/CAD and cryptocurrencies in terms of market sentiment, it is not a reliable indicator for predicting the movement of either asset.
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• Nov 23, 2021 · 3 years ago
  The correlation between AUD/CAD and cryptocurrencies is like trying to find a connection between apples and oranges. Sure, they both exist in the financial world, but their value drivers and market dynamics are completely different. AUD/CAD is influenced by economic factors specific to Australia and Canada, such as interest rates, trade balances, and political stability. Cryptocurrencies, on the other hand, are driven by factors like investor sentiment, technological advancements, and regulatory developments. So, while there might be some coincidental movements between the two, it's not a reliable correlation to base trading decisions on.
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• Nov 23, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that the correlation between AUD/CAD and cryptocurrencies is not a significant one. While there might be some short-term coincidental movements, the long-term correlation is weak. The value of AUD/CAD is primarily driven by economic factors specific to Australia and Canada, such as interest rates, inflation, and trade balances. Cryptocurrencies, on the other hand, are influenced by factors like market demand, regulatory developments, and technological advancements. So, it's important to analyze each asset class separately and not rely on the correlation between AUD/CAD and cryptocurrencies for trading decisions.
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