Which digital currencies show the strongest correlation to major forex pairs?
Mạnh Đức VũDec 25, 2021 · 3 years ago3 answers
In the world of digital currencies, which specific cryptocurrencies have the highest correlation with major forex pairs? I'm interested in knowing which cryptocurrencies tend to move in sync with traditional fiat currencies. Can you provide some insights into this correlation?
3 answers
- Dec 25, 2021 · 3 years agoWhen it comes to the correlation between digital currencies and major forex pairs, Bitcoin (BTC) and Ethereum (ETH) are often considered to have the strongest relationship. These two cryptocurrencies have gained significant popularity and are frequently traded against various fiat currencies. Their prices often reflect the overall sentiment in the cryptocurrency market, which can be influenced by global economic factors and geopolitical events. Therefore, if you're looking for digital currencies that closely follow the movements of major forex pairs, BTC and ETH are worth keeping an eye on.
- Dec 25, 2021 · 3 years agoWhile Bitcoin and Ethereum are indeed highly correlated with major forex pairs, it's important to note that other cryptocurrencies also exhibit some level of correlation. For example, Ripple (XRP) and Litecoin (LTC) have shown moderate correlations with forex pairs in the past. However, it's worth mentioning that the correlation between digital currencies and forex pairs can vary over time and is subject to market dynamics. Therefore, it's always recommended to conduct thorough research and analysis before making any investment decisions.
- Dec 25, 2021 · 3 years agoAccording to a recent analysis conducted by BYDFi, a digital currency exchange, it was found that Bitcoin (BTC) and Ethereum (ETH) exhibit the strongest correlation with major forex pairs. This correlation is primarily driven by the widespread adoption and recognition of BTC and ETH in both the cryptocurrency and traditional financial markets. As a result, these two cryptocurrencies tend to move in sync with major forex pairs, making them attractive options for traders who are interested in diversifying their portfolios across different asset classes.
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