Which cryptocurrencies are most affected by changes in the GBP to dollar exchange rate?

3 answers

• Dec 26, 2021 · 3 years ago
  When it comes to the impact of changes in the GBP to dollar exchange rate on cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) are among the most affected. As the two largest cryptocurrencies by market capitalization, they tend to have a higher correlation with major fiat currencies. When the GBP strengthens against the USD, the value of BTC and ETH may decrease, as investors may prefer to hold GBP instead of these digital assets. Conversely, when the GBP weakens against the USD, BTC and ETH may experience a price increase as investors seek alternative investments.
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• Dec 26, 2021 · 3 years ago
  The GBP to dollar exchange rate can also have an influence on other popular cryptocurrencies such as Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH). While their correlation with the GBP to USD exchange rate may not be as strong as BTC and ETH, these cryptocurrencies can still be impacted by changes in the exchange rate. Traders and investors should keep an eye on the GBP to USD exchange rate and consider its potential effects on these digital assets.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that cryptocurrencies with a smaller market capitalization and lower trading volume are generally more susceptible to fluctuations in the GBP to dollar exchange rate. This is because these cryptocurrencies often have less liquidity and are more influenced by market sentiment. Therefore, traders should exercise caution when trading these smaller cryptocurrencies during periods of significant GBP to USD exchange rate changes.
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