Definition ∞ US Dollar strength refers to the appreciation of the United States dollar’s value relative to other major global currencies. A stronger dollar makes dollar-denominated assets, including some cryptocurrencies, more expensive for international buyers, potentially reducing demand. Conversely, it can make foreign assets cheaper for US investors. This strength is influenced by economic indicators, interest rates, and geopolitical stability. It impacts global trade and investment flows.
Context ∞ The strength of the US Dollar is a significant macroeconomic factor frequently discussed in cryptocurrency news, often influencing digital asset prices. A stronger dollar can exert downward pressure on risk assets, including cryptocurrencies, as investors seek safety in the reserve currency. Observing Federal Reserve policy decisions and global economic reports provides context for understanding its impact on the digital asset market.
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