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Which digital currencies are most influenced by forex trading?

Rakesh VasanthavadaJun 12, 2022 · 3 years ago3 answers

In the world of digital currencies, there are several factors that can influence their value. One of these factors is forex trading. Forex trading refers to the buying and selling of different currencies in the foreign exchange market. Some digital currencies are more influenced by forex trading than others. Which digital currencies are most influenced by forex trading and why?

Digital Currencies
Forex Trading

3 answers

  • Jun 12, 2022 · 3 years ago
    Digital currencies that are most influenced by forex trading include Bitcoin, Ethereum, and Ripple. These currencies are widely traded in the forex market and their value can be affected by changes in the exchange rates of major fiat currencies. For example, if the value of the US dollar decreases against other major currencies, the value of Bitcoin may increase as investors seek alternative investments. Similarly, if the value of the euro increases, it may have a positive impact on the value of Ethereum. Overall, the digital currencies that are most influenced by forex trading are those that have high trading volumes and are actively traded in the forex market.
  • Jun 12, 2022 · 3 years ago
    When it comes to digital currencies, forex trading can have a significant impact on their value. Currencies like Bitcoin, Ethereum, and Ripple are often influenced by changes in the forex market. This is because these currencies are widely traded against major fiat currencies like the US dollar, euro, and yen. As a result, fluctuations in the exchange rates of these fiat currencies can affect the value of digital currencies. Traders and investors who are active in the forex market often keep a close eye on these digital currencies as they can provide opportunities for profit.
  • Jun 12, 2022 · 3 years ago
    According to BYDFi, a digital currency exchange, the digital currencies that are most influenced by forex trading are Bitcoin, Ethereum, and Ripple. These currencies have high trading volumes in the forex market and are actively traded against major fiat currencies. Changes in the exchange rates of these fiat currencies can have a direct impact on the value of these digital currencies. Traders who are looking to take advantage of forex trading opportunities often consider these digital currencies as they offer liquidity and potential for profit. However, it's important to note that the influence of forex trading on digital currencies can vary and is subject to market conditions and investor sentiment.

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