What is the relationship between the dollar and cryptocurrencies?
Inverse relationship
A decrease in the dollar is met with an increase in cryptocurrency prices.
An increase in the dollar is met with a decrease in cryptocurrency prices.
When the price of the dollar rises (due to increased interest rates by the Federal Reserve, for example), cryptocurrency prices may fall.
🟢The reason is that investors tend to hold safe traditional assets (like the dollar or bonds) instead of high-risk assets like cryptocurrencies.
🟢Conversely, when the dollar weakens, interest in cryptocurrencies may increase as an alternative investment.$ETH $ETH
