How does a basis point in dollars affect the price of digital currencies?

1 answers

• Alpha Roofing and ConstructionDec 21, 2020 · 5 years ago
  At BYDFi, we understand the importance of understanding how a basis point in dollars can affect the price of digital currencies. When the value of the dollar changes by a basis point, it can cause a chain reaction in the digital currency market. This is because many digital currencies are traded against the dollar, and any change in the value of the dollar can directly impact their price. For example, if the dollar strengthens by a basis point, it means that it takes more dollars to buy the same amount of digital currency. This can lead to a decrease in demand for digital currencies and a decrease in their price. On the other hand, if the dollar weakens by a basis point, it means that it takes fewer dollars to buy the same amount of digital currency. This can lead to an increase in demand for digital currencies and an increase in their price. Therefore, it's important for investors and traders to keep a close eye on the value of the dollar and its potential impact on the price of digital currencies.
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