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How does the option expiry calendar affect the price movements of digital currencies?

avatarChaficNov 24, 2021 · 3 years ago1 answers

Can you explain how the option expiry calendar affects the price movements of digital currencies in the cryptocurrency market?

How does the option expiry calendar affect the price movements of digital currencies?

1 answers

  • avatarNov 24, 2021 · 3 years ago
    At BYDFi, we closely monitor the option expiry calendar and its impact on the price movements of digital currencies. The expiry of options contracts can create short-term price fluctuations due to the increased trading activity. Traders who hold options positions may choose to exercise their contracts, leading to a surge in buying or selling pressure. This can result in sharp price movements in digital currencies. Additionally, the expiry calendar can also provide valuable information about market sentiment and expectations. Traders often adjust their strategies or positions based on the upcoming expirations, which can further influence price movements. Therefore, understanding and analyzing the option expiry calendar is crucial for predicting and reacting to price movements in the digital currency market.