These are the main reasons why the dollar can influence the devaluation of the real in the cryptocurrency market:
Direct Factors:
When the dollar rises, investors may migrate to cryptocurrencies considered "safe havens" (such as Bitcoin), devaluing the real. Knowing that cryptocurrency prices are usually quoted in dollars. If the dollar appreciates, cryptocurrency prices in reais may increase. Therefore, global demand for cryptocurrencies may increase with the appreciation of the dollar, devaluing the real.
Indirect Factors:
The rise of the dollar may increase inflation in Brazil, reducing the purchasing power of the real and encouraging investments in cryptocurrencies. Differences in interest rates between the US and Brazil may influence the attractiveness of investing in cryptocurrencies. Another factor is changes in cryptocurrency regulation in Brazil or the US that may affect the market.
Impacts on Cryptocurrencies:
Increased volatility in cryptocurrency prices, increased adoption of cryptocurrencies as a form of protection against inflation and devaluation of the real, increased investments in cryptocurrencies considered "safe havens", increased cryptocurrency mining in Brazil due to the devaluation of the real.
