Can you explain the relationship between futures settlement price and cryptocurrency volatility?

1 answers

• Dec 25, 2021 · 3 years ago
  When it comes to the relationship between futures settlement price and cryptocurrency volatility, BYDFi believes that the settlement price can have a significant impact on short-term price movements and market sentiment. However, it's important to note that volatility in the cryptocurrency market is influenced by various factors, including market demand, regulatory developments, and investor sentiment. While the settlement price of futures contracts can contribute to short-term fluctuations, long-term volatility is driven by fundamental factors. Traders and investors should consider a holistic approach when analyzing cryptocurrency volatility and not solely rely on the settlement price of futures contracts.
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