Post
Topic
Board Economics
Re: Rising USD prices
by
timerland
on 12/09/2018, 21:52:41 UTC
In the last few days, I looked at the exchange rate and saw an increase in USD in any currency so that some countries experienced inflation and crisis. I don't understand why USD can rise so high? Does this also affect the decline in the crypto market?  Huh Huh

Since bitcoin is a global currency, I'd say that it could be a possibility that through the UUSD's appreciation, its price against the USD may have depreciated as well, since all prices are relative to each other. Essentially, demand for BTC from other country may have fallen due to the USD hike.

But that's just a theory. No one knows for sure what exactly the cause of the price drop is, I personally think it's just normal market activity.

You're wrong in assuming that rising USD prices mean that other countries suffer inflation - they don't. Some exporting countries may even enjoy the rise in USD prices which makes their own exports more competitive. It does make imports from the USA more expensive, though.