What impact does DXY have on the trading volume of cryptocurrencies?

1 answers

• Jan 12, 2022 · 3 years ago
  At BYDFi, we have observed that the DXY can have an influence on the trading volume of cryptocurrencies. When the DXY strengthens, we tend to see a slight decrease in trading activity in the cryptocurrency market. This is likely due to the fact that a stronger US dollar makes cryptocurrencies relatively more expensive for international investors. However, it's important to note that the impact of the DXY on trading volume is just one of many factors that can affect the cryptocurrency market. Other factors, such as market sentiment, technological advancements, and regulatory developments, also play a significant role in determining trading volume. Therefore, it's crucial to consider a holistic approach when analyzing the relationship between the DXY and the trading volume of cryptocurrencies.
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