Which cryptocurrencies are most affected by the fluctuations in the USD/JPY exchange rate?

3 answers

• Dec 20, 2021 · 3 years ago
  As an expert in the field of cryptocurrencies, I can tell you that Bitcoin and Ethereum are among the digital currencies most affected by fluctuations in the USD/JPY exchange rate. This is because these two cryptocurrencies have a significant trading volume in both USD and JPY. When the USD/JPY exchange rate fluctuates, it directly impacts the value of Bitcoin and Ethereum. Investors and traders who hold these cryptocurrencies may experience gains or losses depending on the direction of the exchange rate movement.
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• Dec 20, 2021 · 3 years ago
  When it comes to the impact of the USD/JPY exchange rate on cryptocurrencies, it's important to consider the concept of safe-haven assets. Cryptocurrencies like Bitcoin are often considered as a safe-haven investment during times of economic uncertainty. As the USD/JPY exchange rate fluctuates, it can reflect changes in market sentiment and investor confidence. If the exchange rate indicates a weakening USD and a strengthening JPY, investors may flock to Bitcoin as a safe-haven asset, driving up its value. On the other hand, if the exchange rate suggests a stronger USD and a weaker JPY, Bitcoin may experience a decline in value.
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• Dec 20, 2021 · 3 years ago
  At BYDFi, we've observed that cryptocurrencies with strong ties to the Japanese market are particularly influenced by the fluctuations in the USD/JPY exchange rate. For example, Ripple (XRP) has a close partnership with various Japanese banks and financial institutions. As a result, any changes in the USD/JPY exchange rate can impact the value and adoption of Ripple. Similarly, other cryptocurrencies that have significant partnerships or user bases in Japan may also be affected by the USD/JPY exchange rate fluctuations. It's crucial for investors to consider these factors when analyzing the potential impact of forex movements on specific cryptocurrencies.
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