What factors influence the shape of forward price curves in the cryptocurrency market?

1 answers

• May 03, 2022 · 3 years ago
  In the cryptocurrency market, the shape of forward price curves is influenced by various factors. One factor is the level of market competition among different cryptocurrencies. When there is intense competition, the forward price curves may exhibit steep slopes as cryptocurrencies vie for market dominance. Another factor is the level of market speculation and investor sentiment. Speculative trading and hype can cause the curves to become more volatile and exhibit sudden spikes or drops. Additionally, external factors such as regulatory developments, technological advancements, and macroeconomic conditions can also impact the shape of forward price curves. It's important for investors to closely monitor these factors and conduct thorough analysis to make informed trading decisions.
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