In the last few days, I looked at the exchange rate and saw an increase in USD in any currency so some countries experienced inflation and crisis. I don't understand why the USD can rise so high. Does this also affect the decline in the crypto market?
The demand for the dollar increases when international parties, such as foreign citizens, foreign central banks, or foreign financial institutions demand more dollars.When the dollar is traded, three factors can drive its value, including supply and demand, market sentiment,and technical market data.
Normally,people beleive that crypto prices are have also influenced and impacted USD and vice versa.Historically,studies have shown diffrence between the price of Bitcoin and the value of the U.S. dollar. This means that when the dollar is strong,the price of Bitcoin tends to fall,and vice versa.Honestly,I clearly don't know how that concept operates.