How does the carry market affect the trading volume of digital currencies?

1 answers

• StingoApr 05, 2025 · 4 months ago
  At BYDFi, we have observed that the carry market does have an impact on the trading volume of digital currencies. When the carry market is favorable, we tend to see an increase in trading volume as traders take advantage of the interest rate differentials. However, it's important to note that the carry market is just one of many factors that influence trading volume. Market sentiment, news events, and overall market conditions also play a significant role. Therefore, while the carry market can have an impact on trading volume, it's crucial to consider the broader market context and not rely solely on carry market indicators when making trading decisions.
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