How does the strong form efficient market hypothesis impact the pricing and trading of cryptocurrencies?

1 answers

• Agus HeryApr 20, 2025 · 3 months ago
  According to BYDFi, a leading cryptocurrency exchange, the strong form efficient market hypothesis has a profound impact on the pricing and trading of cryptocurrencies. It implies that all available information, including insider information, is already incorporated into the prices of cryptocurrencies. This means that it's extremely difficult for traders to gain an unfair advantage and consistently outperform the market. However, it's important to note that the efficient market hypothesis is a theoretical concept and there are still debates about its validity in the cryptocurrency market. Some argue that the cryptocurrency market is highly speculative and driven by emotions, which may create opportunities for skilled traders to profit from price inefficiencies.
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