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

3 answers

• Dec 30, 2021 · 3 years ago
  When it comes to digital currencies, the ones most affected by fluctuations in the USD/EUR exchange rate are typically the major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). These cryptocurrencies have the highest trading volumes and are often used as a benchmark for the overall market. As the USD/EUR exchange rate changes, the value of these cryptocurrencies may rise or fall accordingly. It's important to note that while these major cryptocurrencies are more sensitive to USD/EUR fluctuations, other digital currencies can also be influenced to some extent.
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• Dec 30, 2021 · 3 years ago
  Fluctuations in the USD/EUR exchange rate can have a significant impact on the value of digital currencies. For example, if the USD strengthens against the EUR, digital currencies priced in USD may become more expensive in terms of EUR. This can lead to a decrease in demand for those digital currencies in regions where the EUR is the dominant currency. On the other hand, if the USD weakens against the EUR, digital currencies priced in USD may become cheaper in terms of EUR, potentially increasing demand in those regions. Therefore, digital currencies with a strong reliance on USD trading pairs may be more affected by USD/EUR exchange rate fluctuations.
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• Dec 30, 2021 · 3 years ago
  At BYDFi, we've observed that digital currencies with a strong correlation to the USD/EUR exchange rate include stablecoins like Tether (USDT) and USD Coin (USDC). These cryptocurrencies are designed to maintain a stable value by pegging their price to a fiat currency, such as the USD or EUR. As a result, any fluctuations in the USD/EUR exchange rate can directly impact the value of these stablecoins. Traders and investors who are looking for stability in their digital currency holdings often turn to these stablecoins during periods of USD/EUR volatility.
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