How does forex trading affect cryptocurrency prices?

1 answers

• Murshid AnsariAug 04, 2021 · 4 years ago
  Forex trading plays a crucial role in shaping cryptocurrency prices. The forex market operates 24/7 and has a massive trading volume, making it a significant factor in determining the value of cryptocurrencies. When forex traders engage in buying or selling a particular currency, it affects the exchange rate of that currency. This, in turn, impacts the value of cryptocurrencies paired with that currency. For instance, if there is a surge in demand for the Euro in the forex market, it can lead to an increase in the value of cryptocurrencies like Bitcoin or Ripple that are paired with the Euro. Conversely, if there is a decline in the value of a currency in the forex market, it can result in a decrease in the value of cryptocurrencies paired with that currency. Therefore, keeping an eye on forex trading activities can provide valuable insights into the potential movement of cryptocurrency prices.
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