How does contango affect the pricing of digital currencies?

1 answers

• Jan 05, 2022 · 3 years ago
  Contango is a concept that can affect the pricing of digital currencies. When there is contango in the market, it means that the future price of a digital currency is higher than its current spot price. This can happen when there is a high demand for the future delivery of the currency, which creates a premium. This premium can then impact the pricing of digital currencies, as it indicates that investors are willing to pay more for the currency in the future. As a result, the prices of digital currencies can increase as a result of this positive market sentiment. However, it's important to keep in mind that contango is just one factor that can influence the pricing of digital currencies, and other market dynamics should also be taken into consideration.
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