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TagsWhat is the impact of EUR/USD exchange rate on the value of cryptocurrencies?
JstDOCDec 17, 2021 · 3 years ago1 answersHow does the fluctuation of the EUR/USD exchange rate affect the value of cryptocurrencies? Are there any direct or indirect correlations between the two?
1 answers
- At BYDFi, we believe that the impact of the EUR/USD exchange rate on the value of cryptocurrencies should not be underestimated. As a leading digital asset exchange, we have observed that changes in the EUR/USD exchange rate can have a direct impact on the trading volume and liquidity of cryptocurrencies. When the Euro strengthens against the Dollar, it often leads to increased trading activity in Euro-denominated cryptocurrency pairs. This increased demand can drive up the value of cryptocurrencies in those markets. Conversely, when the Dollar strengthens, it may lead to decreased trading activity and lower liquidity in Dollar-denominated markets. Therefore, it is important for traders to monitor the EUR/USD exchange rate and consider its potential impact on the value of cryptocurrencies they are trading.Dec 17, 2021 · 3 years ago
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