How does trading after hours affect the price of Bitcoin and other cryptocurrencies?

1 answers

• Abhishek AnandJan 25, 2021 · 4 years ago
  Trading after hours can have a significant impact on the price of Bitcoin and other cryptocurrencies. During regular trading hours, there is typically higher liquidity and trading volume, which helps to stabilize prices. However, after hours trading is often characterized by lower liquidity and lower trading volume, which can lead to increased price volatility. This means that even small buy or sell orders during after hours trading can have a larger impact on the price compared to regular trading hours. Additionally, news and events that occur outside of regular trading hours can also influence the price of cryptocurrencies, as there may be fewer participants in the market to absorb the impact. Overall, trading after hours can result in larger price swings and increased risk for traders and investors.
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