How does reversion impact the value of cryptocurrencies?

1 answers

• May 11, 2022 · 3 years ago
  Reversion is a fundamental concept that influences the value of cryptocurrencies. When a cryptocurrency's price deviates from its average, it tends to revert back to the mean. This means that if a cryptocurrency experiences a significant increase or decrease in value, it is likely to correct itself and move back towards its average value. Reversion impacts the value of cryptocurrencies by creating trading opportunities for investors. Traders can take advantage of the reversion by buying a cryptocurrency when its price is below its average and selling it when the price reverts back to the mean. However, it's important to note that reversion is not a guaranteed phenomenon and cryptocurrencies can also experience extended periods of deviation from their mean value.
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