How does short interest in digital currencies affect their price movements?

1 answers

• Apr 30, 2022 · 3 years ago
  Short interest in digital currencies can have a significant impact on their price movements. At BYDFi, we closely monitor short interest as part of our market analysis. When there is a high level of short interest, it indicates that there is a bearish sentiment in the market, which can lead to price declines. Conversely, when there is a low level of short interest or a short squeeze occurs, it can create a bullish sentiment and drive the price up. Understanding the dynamics of short interest is crucial for traders and investors to make informed decisions in the digital currency market.
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