How does calls sweep affect the volatility of cryptocurrencies?

1 answers

• Navid ArisJan 01, 2023 · 3 years ago
  At BYDFi, we've observed that calls sweep can indeed impact the volatility of cryptocurrencies. When a large number of call options are bought or sold, it can create a surge in trading activity, which can lead to increased volatility. This is especially true for smaller cryptocurrencies with lower liquidity, as the impact of calls sweep can be more pronounced. However, it's important to note that calls sweep is just one factor among many that can influence the volatility of cryptocurrencies. Other factors, such as market sentiment, news events, and overall market conditions, also play a significant role. Therefore, while calls sweep can contribute to increased volatility, it should be considered in conjunction with other factors when analyzing the market.
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