Which cryptocurrencies are most affected by forex NFP news and why?

3 answers

• Dec 17, 2021 · 3 years ago
  Certainly! When it comes to cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) are the most affected by forex NFP news. This is primarily because they are the largest and most widely traded cryptocurrencies, and their prices are influenced by global economic events. The forex NFP report provides insights into the employment situation in the United States, which has a significant impact on the global economy. As a result, Bitcoin and Ethereum, being the leading cryptocurrencies, tend to experience increased volatility and price movements in response to NFP news.
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• Dec 17, 2021 · 3 years ago
  The sensitivity of cryptocurrencies to forex NFP news can be attributed to the fact that they are considered alternative investments and are often seen as a hedge against traditional financial markets. When the NFP report indicates positive employment growth, it suggests a strong economy, which can lead to a decrease in demand for cryptocurrencies as investors may shift their focus to traditional assets. Conversely, if the NFP report shows negative employment data, it may lead to increased demand for cryptocurrencies as investors seek alternative investment opportunities. Therefore, the impact of forex NFP news on cryptocurrencies is closely tied to market sentiment and investor behavior.
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• Dec 17, 2021 · 3 years ago
  According to a study conducted by BYDFi, in addition to Bitcoin and Ethereum, other cryptocurrencies that are significantly influenced by forex NFP news include Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). These cryptocurrencies have established themselves as major players in the market and are often seen as indicators of the overall cryptocurrency market sentiment. As a result, any news or events that impact the global economy, such as the forex NFP report, can have a ripple effect on these cryptocurrencies and cause price fluctuations.
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