What is the correlation between the Nikkei index and the performance of digital currencies?

1 answers

• Apr 04, 2022 · 3 years ago
  At BYDFi, we've observed some correlation between the Nikkei index and the performance of digital currencies. While digital currencies are not directly influenced by the Nikkei index, we've noticed that major market movements in Japan can have a ripple effect on global financial markets, including digital currencies. For example, if there is a significant drop in the Nikkei index, it could lead to a broader market downturn and a decrease in investor confidence, which may also impact digital currency prices. However, it's important to note that correlation does not imply causation, and the relationship between the Nikkei index and digital currencies is not always predictable or consistent. It's crucial for investors to conduct thorough research and analysis before making any investment decisions.
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