How does the difference between futures price and spot price affect the trading volume of digital currencies?

1 answers

• Mouritzen LaraApr 29, 2024 · a year ago
  At BYDFi, we have observed that the difference between futures price and spot price can have a direct impact on the trading volume of digital currencies. When the futures price is significantly higher than the spot price, it often indicates a bullish market sentiment, which attracts more traders and increases trading volume. Conversely, when the futures price is lower than the spot price, it may indicate a bearish market sentiment, leading to a decrease in trading volume. However, it's important to note that other factors such as market demand, news events, and overall market conditions can also influence trading volume, so it's crucial to consider a holistic approach when analyzing the impact of the difference between futures price and spot price on trading volume.
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