How do fiscal year and quarters affect the trading volume of digital currencies?

3 answers

• S MaluJun 06, 2021 · 4 years ago
  The fiscal year and quarters can have a significant impact on the trading volume of digital currencies. During the end of a fiscal year or a quarter, traders and investors often engage in profit-taking or portfolio rebalancing activities, which can lead to increased trading volume. Additionally, regulatory changes or announcements during these periods can also influence trading volume as market participants adjust their positions accordingly. It's important for traders to stay informed about fiscal year and quarter-end dates and any potential events that may impact trading volume in order to make informed investment decisions.
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• TwingemiosMar 14, 2022 · 3 years ago
  The trading volume of digital currencies can be affected by the fiscal year and quarters. For example, during the end of a fiscal year, some investors may choose to sell their digital assets to realize profits or for tax purposes. This increased selling pressure can lead to higher trading volume. Similarly, during the end of a quarter, institutional investors may rebalance their portfolios, which can also impact trading volume. It's crucial for traders to monitor these periods and consider the potential effects on trading volume when making investment decisions.
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• ParasJan 17, 2025 · 7 months ago
  When it comes to the trading volume of digital currencies, the fiscal year and quarters can play a role. At BYDFi, we've observed that during the end of a fiscal year or a quarter, there tends to be increased trading activity. This can be attributed to various factors such as tax planning, profit-taking, and portfolio adjustments. Traders should be aware of these patterns and consider them when analyzing trading volume trends. However, it's important to note that trading volume can be influenced by a multitude of factors, and it's always recommended to conduct thorough research and analysis before making any investment decisions.
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