How does TD short interest affect the value of digital currencies?

Can you explain how TD short interest impacts the value of digital currencies? I've heard that short interest can have a significant influence on the price of stocks, but I'm curious to know if the same applies to digital currencies. How does TD short interest specifically affect the value of digital currencies?

1 answers
- TD short interest can have an impact on the value of digital currencies. When there is a high level of TD short interest, it indicates that there are many traders who have borrowed and sold a particular digital currency, expecting its price to decline. This can create selling pressure and lead to a decrease in the value of the currency. On the other hand, if there is low TD short interest or a high level of short covering, it suggests that traders are closing their short positions, which can create buying pressure and potentially drive up the value of the currency. It's important to consider TD short interest alongside other market factors when evaluating the value of digital currencies.
Mar 18, 2022 · 3 years ago
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