Which digital currencies show the strongest correlation to major forex pairs?

3 answers

• Dec 16, 2021 · 3 years ago
  When it comes to the correlation between digital currencies and major forex pairs, Bitcoin (BTC) and Ethereum (ETH) are often considered to have the strongest relationship. These two cryptocurrencies have gained significant popularity and are frequently traded against various fiat currencies. Their prices often reflect the overall sentiment in the cryptocurrency market, which can be influenced by global economic factors and geopolitical events. Therefore, if you're looking for digital currencies that closely follow the movements of major forex pairs, BTC and ETH are worth keeping an eye on.
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• Dec 16, 2021 · 3 years ago
  While Bitcoin and Ethereum are indeed highly correlated with major forex pairs, it's important to note that other cryptocurrencies also exhibit some level of correlation. For example, Ripple (XRP) and Litecoin (LTC) have shown moderate correlations with forex pairs in the past. However, it's worth mentioning that the correlation between digital currencies and forex pairs can vary over time and is subject to market dynamics. Therefore, it's always recommended to conduct thorough research and analysis before making any investment decisions.
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• Dec 16, 2021 · 3 years ago
  According to a recent analysis conducted by BYDFi, a digital currency exchange, it was found that Bitcoin (BTC) and Ethereum (ETH) exhibit the strongest correlation with major forex pairs. This correlation is primarily driven by the widespread adoption and recognition of BTC and ETH in both the cryptocurrency and traditional financial markets. As a result, these two cryptocurrencies tend to move in sync with major forex pairs, making them attractive options for traders who are interested in diversifying their portfolios across different asset classes.
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