How does the performance of SQQQ correlate with the cryptocurrency market?

3 answers

• Dec 27, 2021 · 3 years ago
  The performance of SQQQ, as an inverse leveraged ETF, is designed to move in the opposite direction of the cryptocurrency market. When the cryptocurrency market experiences a downturn, SQQQ tends to increase in value. However, it's important to note that SQQQ's performance is not solely dependent on the cryptocurrency market and can be influenced by other factors such as market sentiment and overall market conditions. So, while there is a correlation between SQQQ and the cryptocurrency market, it's not a direct one-to-one relationship.
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• Dec 27, 2021 · 3 years ago
  SQQQ's performance is closely tied to the cryptocurrency market due to its inverse leveraged nature. When the cryptocurrency market goes up, SQQQ tends to go down, and vice versa. This is because SQQQ is designed to provide investors with three times the inverse daily performance of the NASDAQ-100 Index, which includes many technology companies that are heavily involved in the cryptocurrency space. Therefore, if the cryptocurrency market experiences significant volatility or a major price movement, it can have a noticeable impact on the performance of SQQQ.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a digital currency exchange, does not directly offer SQQQ for trading. However, it's worth mentioning that the performance of SQQQ is influenced by the overall cryptocurrency market. As an inverse leveraged ETF, SQQQ is designed to provide investors with amplified returns that move in the opposite direction of the underlying index, which includes technology companies involved in the cryptocurrency market. Therefore, if the cryptocurrency market experiences a significant uptrend or downtrend, it can potentially affect the performance of SQQQ.
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