How does the dollar index impact the value of cryptocurrencies?

1 answers

• Nov 23, 2021 · 3 years ago
  The dollar index can have a significant impact on the value of cryptocurrencies. When the dollar index rises, it generally leads to a decrease in the value of cryptocurrencies. This is because a stronger dollar makes cryptocurrencies less attractive to investors, as they become relatively more expensive. On the other hand, when the dollar index falls, it often leads to an increase in the value of cryptocurrencies. This is because a weaker dollar makes cryptocurrencies relatively more attractive, as they become relatively cheaper. Therefore, understanding the relationship between the dollar index and cryptocurrencies is important for investors in the crypto market.
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