How does the broad dollar index affect the value of digital currencies?

1 answers

• Sport worldDec 30, 2020 · 5 years ago
  The broad dollar index has a direct impact on the value of digital currencies. When the dollar index goes up, digital currencies usually go down in value. This is because a stronger dollar makes digital currencies more expensive for international investors, reducing their demand. Conversely, when the dollar index goes down, digital currencies tend to increase in value. This is because a weaker dollar makes digital currencies cheaper for international investors, increasing their demand. Therefore, understanding the relationship between the broad dollar index and digital currencies is essential for anyone involved in the digital currency market. Keep an eye on the dollar index to stay ahead of the game!
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