What is the correlation between GBP/NZD and cryptocurrency market?
AddieDec 06, 2021 · 3 years ago1 answers
Can you explain the relationship between the GBP/NZD exchange rate and the cryptocurrency market? How does the fluctuation of the GBP/NZD affect the prices of cryptocurrencies? Are there any specific factors that drive this correlation?
1 answers
- Dec 06, 2021 · 3 years agoAt BYDFi, we have observed a moderate correlation between GBP/NZD and the cryptocurrency market. When the GBP/NZD exchange rate strengthens, we often see a slight increase in the prices of cryptocurrencies, especially those with a larger market capitalization. This can be attributed to the fact that a stronger British pound relative to the New Zealand dollar may attract more investors to the cryptocurrency market. However, it's important to note that correlation does not imply causation, and other factors such as market sentiment and global economic conditions also play a significant role in determining cryptocurrency prices. Therefore, it's always recommended to conduct thorough research and analysis before making any investment decisions.
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