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Can you explain the relationship between futures settlement price and cryptocurrency volatility?

Anup PandeyMay 05, 2022 · 3 years ago1 answers

What is the connection between the settlement price of futures contracts and the volatility of cryptocurrencies? How does the settlement price affect the overall market volatility?

1 answers

  • May 05, 2022 · 3 years ago
    When it comes to the relationship between futures settlement price and cryptocurrency volatility, BYDFi believes that the settlement price can have a significant impact on short-term price movements and market sentiment. However, it's important to note that volatility in the cryptocurrency market is influenced by various factors, including market demand, regulatory developments, and investor sentiment. While the settlement price of futures contracts can contribute to short-term fluctuations, long-term volatility is driven by fundamental factors. Traders and investors should consider a holistic approach when analyzing cryptocurrency volatility and not solely rely on the settlement price of futures contracts.