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USD Index up by 0.05% at 91.81; no panic for crypto investors

USD

TL;DR Breakdown

  • Recently, we saw an increase in the worth of the USD by 0.05 percent.
  • It is often seen that traders have no fear of this fluctuation of fiat.
  • The main goal of any trader is to maximize the number of cryptos he has.

Altcoins are mostly dependent on two factors. The first and most important are its characteristics like fundamentals, potential, liquidity, trader sentiment towards the project, trading volume, etc and the other one is Bitcoin’s performance. The latter often significantly renders the altcoins movement without any relevance.

It is not hidden that whenever there is a spike in Bitcoin price, all the altcoins jump and when the king is low in price, all the altcoins have to give away their increased price. Even the coins with very strong fundamentals bow down to BTC.

Many traders are worried about the decrease in the USD value of their portfolio while others do not care. The ones that are unfazed by this problem are the ones who trade exclusively against BTC on key exchanges where the altcoin/BTC pair liquidity may look better than the same altcoin/stablecoin pair.

Does USD have any effect on crypto?

It is important to realize that enhancing the Bitcoin portfolio is much more important than converting it into fiat currency like USD. The only influence USD has on BTC is that the former has to be used on crypto exchanges.

It might look that the coins’ own conditions are insignificant in comparison to the influence of Bitcoin which is partially true. However, the ones with strong fundamentals are one of the top gainers in the bullish zones. Also, they recover harder and faster than the others when the market is widely in correction mode.

Now the question is how do you characterize such healthy coins with others? For that, one has to study its fundamentals, its historic bullish and bearish patterns, and a comparison of its social metrics with BTC and the overall market.

Therefore, it’s important to have more coins than more USD in the present scenario.

Dennis Mugambi

Dennis Mugambi

Dennis is a content writer with a deep understanding of the blockchain domain and cryptocurrency field. He infuses cold data with flair to make technology and finances mind-blowing. His reports both fascinate and awaken the readers.

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