Which cryptocurrencies are most affected by fluctuations in foreign exchange rates?

3 answers

• Nov 27, 2021 · 3 years ago
  As an expert in the field of cryptocurrencies, I can tell you that Bitcoin and Ethereum are among the most affected by fluctuations in foreign exchange rates. This is mainly because they are the most widely traded and recognized cryptocurrencies in the market. Their value is often influenced by changes in global economic conditions and investor sentiment, which in turn can be impacted by fluctuations in foreign exchange rates. Additionally, since these cryptocurrencies are often used as a store of value or a medium of exchange, their value can be influenced by changes in the value of traditional fiat currencies. Therefore, it's important for investors to keep an eye on foreign exchange rates when trading Bitcoin and Ethereum.
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• Nov 27, 2021 · 3 years ago
  When it comes to cryptocurrencies, the ones that are most affected by fluctuations in foreign exchange rates are typically the ones that have a high trading volume and are widely accepted. This includes popular cryptocurrencies like Bitcoin, Ethereum, Ripple, and Litecoin. These cryptocurrencies are often traded against major fiat currencies such as the US dollar, Euro, and Japanese yen. Therefore, any changes in the value of these fiat currencies can have a significant impact on the value of these cryptocurrencies. Additionally, since these cryptocurrencies are often used for international transactions, changes in foreign exchange rates can affect their value as well. So, if you're looking to invest in cryptocurrencies, it's important to consider the impact of foreign exchange rates on their value.
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• Nov 27, 2021 · 3 years ago
  According to a recent study conducted by BYDFi, the cryptocurrencies that are most affected by fluctuations in foreign exchange rates are Bitcoin, Ethereum, and Ripple. These cryptocurrencies have a high trading volume and are widely accepted, which makes them more susceptible to changes in foreign exchange rates. The study found that when the value of major fiat currencies such as the US dollar or Euro fluctuates, the value of these cryptocurrencies tends to follow suit. This is because many cryptocurrency traders and investors use these fiat currencies as a benchmark for trading and determining the value of cryptocurrencies. Therefore, it's important for traders to closely monitor foreign exchange rates when trading these cryptocurrencies.
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