Which digital currencies are most affected by fluctuations in the EUR/USD exchange rate?

3 answers

• Dec 30, 2021 · 3 years ago
  When it comes to the impact of the EUR/USD exchange rate on digital currencies, Bitcoin (BTC) and Ethereum (ETH) are the most affected. As the two largest cryptocurrencies by market capitalization, they tend to have a higher correlation with traditional financial markets. When the EUR/USD exchange rate fluctuates, it can influence investor sentiment and trigger buying or selling pressure on BTC and ETH. However, it's important to note that the extent of the impact may vary depending on market conditions and other factors.
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• Dec 30, 2021 · 3 years ago
  Fluctuations in the EUR/USD exchange rate can have a significant impact on digital currencies, especially those with strong ties to European markets. Cryptocurrencies like Ripple (XRP) and Stellar (XLM) have partnerships with European financial institutions and are often used for cross-border transactions involving the Euro. Therefore, any changes in the EUR/USD exchange rate can affect the demand and adoption of these cryptocurrencies, potentially leading to price volatility.
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• Dec 30, 2021 · 3 years ago
  According to a recent analysis by BYDFi, a digital currency exchange, the digital currencies most affected by fluctuations in the EUR/USD exchange rate are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC). These cryptocurrencies have a higher trading volume in European markets and are more sensitive to changes in the Euro-Dollar exchange rate. Traders and investors should closely monitor the EUR/USD exchange rate to make informed decisions regarding these digital assets.
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