How does the volatility of G10 currency pairs affect the value of cryptocurrencies?

3 answers

• Mohammad Din Nur IkhsaniJul 05, 2025 · 8 months ago
  Absolutely! The volatility of G10 currency pairs can indeed influence the value of cryptocurrencies. When there are significant fluctuations in major currency pairs, it can create a ripple effect in the crypto market. For example, if the USD/EUR pair experiences a sudden drop, it may lead to an increase in the value of cryptocurrencies like Bitcoin or Ethereum. Traders and investors often look for alternative assets during times of uncertainty in the forex market, and cryptocurrencies can be seen as a hedge or safe haven. So, when there is high volatility in G10 currency pairs, it can attract more attention and investment in cryptocurrencies.
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• Damis AmisJan 13, 2023 · 3 years ago
  You bet! The volatility of G10 currency pairs can definitely impact the value of cryptocurrencies. When there are sharp movements in major currency pairs, it can trigger a domino effect in the crypto market. Let's say the USD/JPY pair suddenly surges, it could potentially lead to a decrease in the prices of digital currencies such as Bitcoin or Ethereum. Traders and investors closely monitor the forex market as it often sets the tone for other financial markets, including cryptocurrencies. So, when there is high volatility in G10 currency pairs, it can have a direct influence on the value of cryptocurrencies.
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• Alberto Villegas ChaparroJul 23, 2020 · 6 years ago
  As a representative from BYDFi, I can confirm that the volatility of G10 currency pairs does have an impact on the value of cryptocurrencies. Fluctuations in major currency pairs can create a ripple effect in the crypto market, causing prices to rise or fall. Traders and investors often use forex market movements as indicators for potential shifts in the crypto market. When there is high volatility in G10 currency pairs, it can attract more attention and trading activity in cryptocurrencies. Therefore, it's important to closely monitor both the forex and crypto markets to identify potential correlations and trading opportunities.
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