Which cryptocurrencies are most affected by changes in forex rates?

3 answers

• Qing ChenFeb 10, 2025 · 5 months ago
  Cryptocurrencies such as Bitcoin and Ethereum are most affected by changes in forex rates due to their high market capitalization and widespread adoption. As the forex market experiences fluctuations, the value of these cryptocurrencies can be influenced by factors such as currency exchange rates and economic indicators. For example, if the value of the US dollar strengthens against other currencies in the forex market, it may lead to a decrease in the value of Bitcoin and Ethereum. This is because these cryptocurrencies are often traded against major fiat currencies like the US dollar. Therefore, it is important for cryptocurrency investors to closely monitor forex market trends to make informed trading decisions.
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• Hareesh GangineniApr 25, 2024 · a year ago
  When it comes to the impact of forex rates on cryptocurrencies, it's important to consider the trading volume and liquidity of each cryptocurrency. Cryptocurrencies with higher trading volume and liquidity tend to be more affected by changes in forex rates. This is because higher trading volume means there are more buyers and sellers in the market, which can amplify the impact of forex rate fluctuations. Additionally, cryptocurrencies that are more closely tied to fiat currencies, such as stablecoins like Tether, are also more susceptible to changes in forex rates. These cryptocurrencies are designed to maintain a stable value relative to a specific fiat currency, so any fluctuations in the forex market can directly affect their value.
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• Dayal RawalDec 09, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, has observed that cryptocurrencies with smaller market capitalization and lower trading volume are generally less affected by changes in forex rates. This is because these cryptocurrencies often have a more niche market and are traded against other cryptocurrencies rather than fiat currencies. While forex rate fluctuations can still have an impact on their value indirectly, it is typically less significant compared to larger cryptocurrencies. Therefore, investors looking for cryptocurrencies that are less influenced by forex rates may consider exploring smaller market cap coins and tokens. However, it's important to note that all cryptocurrencies are subject to market volatility and various factors can influence their prices, including but not limited to forex rates.
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