What are the correlations between DXY and cryptocurrency prices?

1 answers

• May 02, 2022 · 3 years ago
  At BYDFi, we have observed some correlations between the DXY and cryptocurrency prices. When the DXY strengthens, we often see a decrease in the value of cryptocurrencies. This is because a stronger US dollar makes cryptocurrencies relatively more expensive for investors using other currencies. Conversely, when the DXY weakens, we tend to see an increase in the value of cryptocurrencies as they become relatively cheaper for investors. However, it's important to note that the correlation is not always consistent and can be influenced by other factors such as market sentiment and regulatory developments. Therefore, while the DXY can provide some insights, it should not be the sole factor in making investment decisions in cryptocurrencies.
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