How does relative currency strength affect the trading volume of digital currencies?

1 answers

• Nov 29, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that the relative currency strength does have an impact on the trading volume of digital currencies. When a currency is strong, it attracts more traders and investors to the digital currency market, leading to increased trading volume. This is because a strong currency provides stability and confidence, which are crucial for traders. On the other hand, when a currency is weak, it can discourage trading activity, as it introduces uncertainty and risk. Therefore, monitoring the relative currency strength is an essential aspect of understanding the dynamics of the digital currency market.
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