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What impact does quadruple witching have on the cryptocurrency market?

avatarRamya ShreeDec 17, 2021 · 3 years ago3 answers

Quadruple witching refers to the simultaneous expiration of four different types of financial derivatives. How does this event affect the cryptocurrency market?

What impact does quadruple witching have on the cryptocurrency market?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    Quadruple witching has a minimal direct impact on the cryptocurrency market. Cryptocurrencies are not directly tied to traditional financial derivatives, so the expiration of these derivatives does not have a significant effect on cryptocurrency prices. However, there may be some indirect effects due to increased market volatility and investor sentiment during quadruple witching periods.
  • avatarDec 17, 2021 · 3 years ago
    Quadruple witching has no direct impact on the cryptocurrency market, but it can indirectly affect investor sentiment and market volatility. During quadruple witching periods, there may be increased trading activity and speculation in the traditional financial markets, which could spill over into the cryptocurrency market. Traders and investors may adjust their positions in response to the expiration of derivatives, leading to short-term price fluctuations in cryptocurrencies.
  • avatarDec 17, 2021 · 3 years ago
    Quadruple witching does not have a direct impact on the cryptocurrency market. However, as a representative of BYDFi, I can tell you that BYDFi is constantly monitoring market trends and events like quadruple witching. While it may not directly affect cryptocurrency prices, it is important to stay informed about these events as they can indirectly influence market sentiment and trading activity.