What is the impact of witching hour on cryptocurrency prices?

4 answers

• Bidisha ShîtDec 11, 2024 · 7 months ago
  The witching hour, which refers to the last hour of trading on a futures contract's expiration date, can potentially have an impact on cryptocurrency prices. During this time, there is often increased volatility and trading activity as traders and investors close out their positions. This heightened activity can lead to price fluctuations in the cryptocurrency market. However, it's important to note that the impact of the witching hour on cryptocurrency prices may vary and is not guaranteed.
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• AnshulAug 04, 2023 · 2 years ago
  The witching hour is believed by some traders to have a significant impact on cryptocurrency prices. They argue that the expiration of futures contracts during this time can cause a surge in trading volume and price movements. However, there is limited empirical evidence to support this claim. While it is true that the witching hour can lead to increased trading activity, it is difficult to determine whether this directly affects cryptocurrency prices. Other factors such as market sentiment and news events also play a crucial role in determining price movements.
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• Chuangqi YangApr 24, 2021 · 4 years ago
  According to a study conducted by BYDFi, there is a correlation between the witching hour and cryptocurrency price movements. The research found that during the witching hour, there is a higher likelihood of price volatility and larger price swings in the cryptocurrency market. This can be attributed to the increased trading activity and the expiration of futures contracts. However, it's important to note that correlation does not imply causation, and other factors can also influence cryptocurrency prices during this time.
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• Lindgreen LewisNov 18, 2023 · 2 years ago
  The impact of the witching hour on cryptocurrency prices is a topic of debate among traders and analysts. Some argue that the expiration of futures contracts during this time can lead to increased volatility and price movements. Others believe that the impact is minimal and that other factors have a more significant influence on cryptocurrency prices. Ultimately, the relationship between the witching hour and cryptocurrency prices is complex and not fully understood. It is advisable for traders to consider multiple factors and conduct thorough analysis before making trading decisions during this time.
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