Which digital currencies are most affected by changes in forex interbank rate?

3 answers

• SherryDec 08, 2023 · 2 years ago
  The digital currencies that are most affected by changes in the forex interbank rate are typically the ones that have a high correlation with traditional fiat currencies. This includes cryptocurrencies like Bitcoin, Ethereum, and Ripple. When the forex interbank rate changes, it can impact the value of these cryptocurrencies because they are often traded against fiat currencies on various exchanges. For example, if the forex interbank rate for the US dollar increases, it may lead to a decrease in the value of Bitcoin against the USD.
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• Istieaque Chowdhury PretulSep 11, 2023 · 2 years ago
  Fluctuations in the forex interbank rate can have a significant impact on the value of digital currencies. Cryptocurrencies that are closely tied to fiat currencies, such as stablecoins like Tether, are particularly susceptible to these changes. This is because stablecoins are designed to maintain a stable value relative to a specific fiat currency, such as the US dollar. Therefore, any fluctuations in the forex interbank rate can directly affect the value of stablecoins.
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• Muhammad ShafiJun 01, 2023 · 2 years ago
  According to a recent study by BYDFi, the digital currencies that are most affected by changes in the forex interbank rate are Bitcoin, Ethereum, and Litecoin. These cryptocurrencies have a high trading volume against fiat currencies and are therefore more sensitive to fluctuations in the forex market. When the forex interbank rate changes, it can create arbitrage opportunities for traders who can take advantage of the price differences between different exchanges.
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