How does inm short interest affect the trading volume of digital currencies?

1 answers

• May 01, 2022 · 3 years ago
  At BYDFi, we have observed that short interest can have a significant impact on the trading volume of digital currencies. When there is a high level of short interest, it often leads to increased trading volume as traders try to take advantage of the expected price decline. Conversely, when short interest is low, it can result in lower trading volume as there is less urgency to buy or sell digital currencies. It's important for traders to monitor short interest levels as it can provide valuable insights into market sentiment and potential trading opportunities.
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