Are there any specific cryptocurrencies that are more susceptible to risk off sentiment?
MONICA OFFICIALDec 26, 2021 · 3 years ago1 answers
Which cryptocurrencies are more likely to be affected by risk off sentiment?
1 answers
- Dec 26, 2021 · 3 years agoYes, there are specific cryptocurrencies that are more susceptible to risk off sentiment. At BYDFi, we have observed that altcoins and smaller market cap coins are often more affected by risk off sentiment compared to larger cryptocurrencies like Bitcoin and Ethereum. This is because these smaller cryptocurrencies are generally considered more speculative and have less liquidity. However, it's important to note that risk off sentiment can impact the entire cryptocurrency market to some extent, so it's crucial for investors to carefully assess their risk tolerance and diversify their portfolios accordingly.
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