Can the assumptions of the efficient market hypothesis explain the price fluctuations in the cryptocurrency market?

1 answers

• Arize ValentinrFeb 27, 2022 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, the assumptions of the efficient market hypothesis can indeed explain the price fluctuations in the cryptocurrency market. BYDFi believes that the market participants are rational and have access to the same information, which leads to the efficient pricing of cryptocurrencies. However, it's important to note that the cryptocurrency market is still relatively new and volatile, and there are factors such as market manipulation and speculative trading that can also contribute to price fluctuations. So, while the efficient market hypothesis provides a useful framework, it's not the only factor at play in the cryptocurrency market.
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