Which cryptocurrencies are most affected by fluctuations in the US dollar rate?

3 answers

• Dec 17, 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 digital currencies by fluctuations in the US dollar rate. This is mainly because these two cryptocurrencies have the highest market capitalization and are widely traded against the US dollar. When the value of the US dollar goes up or down, it directly impacts the prices of Bitcoin and Ethereum. Other cryptocurrencies that are also influenced by the US dollar rate include Ripple, Litecoin, and Bitcoin Cash. However, it's important to note that the extent of the impact may vary depending on market conditions and other factors.
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• Dec 17, 2021 · 3 years ago
  Well, let me break it down for you. When the US dollar strengthens, meaning its value increases compared to other currencies, the prices of cryptocurrencies like Bitcoin and Ethereum tend to decrease. This is because investors often flock to traditional safe-haven assets like the US dollar during times of economic uncertainty. On the other hand, when the US dollar weakens, the prices of cryptocurrencies may rise as investors seek alternative investment opportunities. So, in a nutshell, the US dollar rate plays a significant role in determining the value of cryptocurrencies.
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• Dec 17, 2021 · 3 years ago
  According to research and analysis conducted by BYDFi, a leading digital currency exchange, the cryptocurrencies most affected by fluctuations in the US dollar rate are Bitcoin, Ethereum, and Ripple. These three cryptocurrencies have the highest trading volumes against the US dollar and are thus more susceptible to changes in its value. When the US dollar strengthens, their prices tend to decline, and vice versa. However, it's worth noting that the impact of the US dollar rate on cryptocurrencies is not the only factor influencing their prices. Market demand, investor sentiment, and technological developments also play crucial roles.
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