How does the USD to TWD conversion rate affect the prices of digital currencies?
Kreshanth KolaApr 30, 2022 · 3 years ago1 answers
Can you explain how the exchange rate between the US dollar (USD) and the New Taiwan dollar (TWD) influences the prices of digital currencies? I'm curious to understand the relationship between these two factors and how they impact the value of cryptocurrencies.
1 answers
- Apr 30, 2022 · 3 years agoThe USD to TWD conversion rate has a significant impact on the prices of digital currencies. At BYDFi, we've observed that when the USD strengthens against the TWD, it tends to put downward pressure on the prices of digital currencies. This is because a stronger USD makes it more expensive for TWD holders to buy digital currencies, leading to reduced demand and lower prices. Conversely, when the USD weakens against the TWD, it often leads to an increase in the prices of digital currencies. This is because a weaker USD makes it cheaper for TWD holders to invest in digital currencies, resulting in higher demand and higher prices. Therefore, understanding the relationship between the USD to TWD conversion rate and digital currency prices is crucial for making informed investment decisions.
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