How do forex rates impact the price of digital currencies?

1 answers

• Jun 06, 2022 · 3 years ago
  As a representative of BYDFi, I can say that forex rates have a direct impact on the price of digital currencies. When the exchange rate between two fiat currencies changes, it affects the value of digital currencies traded against those fiat currencies. For example, if the exchange rate between the British pound and the US dollar increases, the value of digital currencies like Bitcoin or Litecoin traded against these currencies may also increase. This is because a stronger pound or dollar makes it more expensive to buy digital currencies, potentially leading to an increase in their price. Conversely, if the exchange rate decreases, it can result in a decrease in the price of digital currencies. Therefore, it is important for traders and investors to consider forex rates when analyzing the digital currency market.
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