Which cryptocurrencies are most affected by changes in gold prices?

3 answers

• May 23, 2022 · 3 years ago
  Cryptocurrencies such as Bitcoin, Ethereum, and Ripple are among the most affected by changes in gold prices. When the price of gold rises, these cryptocurrencies tend to experience an increase in value as well. This is because both gold and cryptocurrencies are considered alternative investments and are often sought after during times of economic uncertainty. Additionally, the limited supply and decentralized nature of cryptocurrencies contribute to their correlation with gold prices.
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• May 23, 2022 · 3 years ago
  The impact of gold prices on cryptocurrencies can be attributed to investor sentiment. When the price of gold increases, investors may perceive it as a sign of economic instability and seek alternative assets such as cryptocurrencies. This increased demand for cryptocurrencies can drive up their prices. However, it's important to note that the correlation between gold prices and cryptocurrencies is not always consistent and can vary depending on market conditions and other factors.
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• May 23, 2022 · 3 years ago
  According to a study conducted by BYDFi, a digital currency exchange, the cryptocurrencies most affected by changes in gold prices are Bitcoin, Litecoin, and Ethereum. The study found that these cryptocurrencies have a strong positive correlation with gold prices, meaning that when gold prices rise, the prices of these cryptocurrencies also tend to increase. This correlation can be attributed to the perception of both gold and these cryptocurrencies as safe-haven assets during times of economic uncertainty.
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