How do the quarters of the fiscal year impact the performance of digital currencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Yes, the performance of digital currencies can indeed be impacted by the quarters of the fiscal year. During certain quarters, such as the end of the fiscal year or the beginning of a new fiscal year, there may be increased buying or selling activity in the market. This can be due to various factors, such as tax considerations or portfolio rebalancing by institutional investors. As a result, the demand and supply dynamics of digital currencies can be affected, leading to potential price fluctuations and volatility.
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• Dec 17, 2021 · 3 years ago
  Absolutely! The quarters of the fiscal year can have a significant impact on the performance of digital currencies. For example, during the last quarter of the fiscal year, many individuals and businesses may be looking to optimize their tax strategies. This can lead to increased buying or selling of digital currencies, depending on the tax implications. Additionally, the beginning of a new fiscal year can bring fresh investment capital into the market, which can also influence the performance of digital currencies.
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• Dec 17, 2021 · 3 years ago
  According to a study conducted by BYDFi, the quarters of the fiscal year do have an impact on the performance of digital currencies. The study analyzed historical data and found that certain quarters exhibited higher levels of trading volume and price volatility compared to others. This suggests that market participants may have specific trading strategies or behaviors during different quarters, which can influence the performance of digital currencies. It's important for investors to be aware of these patterns and adjust their investment strategies accordingly.
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