How does forex international affect the trading volume of cryptocurrencies?

3 answers

• Nov 26, 2021 · 3 years ago
  Absolutely! The international forex market can have a significant impact on the trading volume of cryptocurrencies. As forex traders often diversify their portfolios by including cryptocurrencies, any major movements in the forex market can lead to increased trading activity in the crypto space. For example, if there is a sudden depreciation of a major currency, forex traders may seek alternative investment opportunities in cryptocurrencies, leading to a surge in trading volume.
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• Nov 26, 2021 · 3 years ago
  You bet! The forex market and cryptocurrencies are closely intertwined. When there are significant changes in the forex market, such as interest rate decisions or geopolitical events, it can create ripples in the crypto market. This is because forex traders who are already active in the forex market may also be interested in trading cryptocurrencies, especially during times of uncertainty. As a result, the trading volume of cryptocurrencies can experience fluctuations based on the happenings in the international forex market.
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• Nov 26, 2021 · 3 years ago
  Definitely! The interaction between the forex market and cryptocurrencies is undeniable. At BYDFi, we've observed that when there are major movements in the forex market, it often leads to increased trading volume in cryptocurrencies. This is because forex traders who are looking for additional investment opportunities may turn to cryptocurrencies as a way to diversify their portfolios. As a result, the trading volume of cryptocurrencies can be influenced by the dynamics of the international forex market.
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