How does the FTSE 100 index impact the performance of digital currencies?

Can you explain how the FTSE 100 index affects the performance of digital currencies? I'm curious to know if there is a correlation between the two and how it can impact the value and trading of cryptocurrencies.

1 answers
- At BYDFi, we believe that the FTSE 100 index can have an indirect impact on the performance of digital currencies. As investors seek diversification in their portfolios, they may consider allocating funds to both traditional assets like stocks and digital assets like cryptocurrencies. If the FTSE 100 index experiences a significant drop, it could lead to a decrease in investor confidence and a potential shift in investment strategies. This shift could include a higher allocation to digital currencies as a hedge against traditional market volatility. However, it's important to conduct thorough research and consider multiple factors before making any investment decisions.
Mar 19, 2022 · 3 years ago
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