How can ASX shorts affect the price of digital currencies?

3 answers

• Gerardo QuintanaFeb 09, 2021 · 4 years ago
  ASX shorts can have a significant impact on the price of digital currencies. When investors short sell digital currencies on the ASX, they are essentially betting that the price will decrease. This creates selling pressure in the market, which can drive down the price of digital currencies. Additionally, the negative sentiment generated by short selling can lead to a decrease in investor confidence, further contributing to the downward pressure on prices.
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• Rebaz XoshnawJul 19, 2021 · 4 years ago
  Short selling on the ASX can create a bearish sentiment in the market for digital currencies. As more investors start shorting digital currencies, it can create a domino effect, causing others to sell their holdings as well. This increased selling pressure can lead to a decline in prices. It's important to note that short selling is a normal part of the market and can provide liquidity, but when it becomes excessive, it can have a negative impact on prices.
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• Max HarrisApr 09, 2025 · 3 months ago
  At BYDFi, we believe that the impact of ASX shorts on the price of digital currencies is temporary. While short selling can create short-term downward pressure on prices, it does not change the fundamental value of digital currencies. In fact, it can present buying opportunities for long-term investors who believe in the potential of digital currencies. It's important to focus on the long-term prospects and utility of digital currencies, rather than being swayed by short-term market fluctuations.
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