How does the introduction of schd futures affect the volatility of cryptocurrencies?

3 answers

• Kaphi AssumiApr 02, 2024 · a year ago
  The introduction of scheduled futures can have a significant impact on the volatility of cryptocurrencies. When futures contracts are traded, it allows investors to speculate on the future price of a cryptocurrency without actually owning it. This speculation can lead to increased trading volume and price fluctuations. Additionally, the availability of futures contracts provides an avenue for investors to hedge their positions, which can further contribute to volatility. It is important to note that the impact of scheduled futures on volatility can vary depending on market conditions and the specific cryptocurrency in question.
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• Abdo ManAug 02, 2020 · 5 years ago
  The introduction of scheduled futures can both increase and decrease the volatility of cryptocurrencies. On one hand, futures contracts can attract more institutional investors and traders to the market, which can lead to increased liquidity and potentially reduce price volatility. On the other hand, futures trading can also introduce speculative activities and amplify price fluctuations. It is essential to closely monitor the market dynamics and the behavior of traders to understand the overall impact of scheduled futures on cryptocurrency volatility.
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• Trinh HuỳnhMay 24, 2023 · 2 years ago
  At BYDFi, we have observed that the introduction of scheduled futures has generally led to an increase in the volatility of cryptocurrencies. This can be attributed to the speculative nature of futures trading and the increased trading volume it brings. However, it is important to note that volatility is a natural characteristic of the cryptocurrency market, and scheduled futures are just one factor among many that can influence price fluctuations. It is crucial for investors to carefully assess their risk tolerance and employ appropriate risk management strategies when trading in a volatile market.
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