How do ask and bid orders affect the price of cryptocurrencies?

1 answers

• Fabricius McCrackenSep 19, 2023 · 2 years ago
  At BYDFi, we have observed that ask and bid orders have a direct impact on the price of cryptocurrencies. When there are more bid orders than ask orders, the price tends to increase, and vice versa. This is because bid orders indicate a higher demand for the cryptocurrency, which drives the price up. On the other hand, when there are more ask orders than bid orders, the price tends to decrease due to the higher supply of the cryptocurrency. It's crucial for traders to monitor the order book and the ratio of bid to ask orders to make informed trading decisions.
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