Can the choice between fiscal quarter and calendar quarter affect the volatility of cryptocurrency prices?
Ibrahim Abdallah AdamDec 25, 2021 · 3 years ago3 answers
How does the choice between fiscal quarter and calendar quarter impact the volatility of cryptocurrency prices? Can the timing of financial reporting affect the fluctuations in cryptocurrency prices?
3 answers
- Dec 25, 2021 · 3 years agoThe choice between fiscal quarter and calendar quarter can indeed have an impact on the volatility of cryptocurrency prices. This is because the timing of financial reporting can influence market sentiment and investor behavior. When companies release their financial reports at the end of a fiscal quarter, it can lead to increased buying or selling pressure depending on the results. This can cause significant price movements in the cryptocurrency market. Additionally, the choice between fiscal quarter and calendar quarter can also affect the timing of regulatory announcements and market events, which can further contribute to price volatility.
- Dec 25, 2021 · 3 years agoAbsolutely! The choice between fiscal quarter and calendar quarter can have a noticeable impact on the volatility of cryptocurrency prices. The timing of financial reporting can create anticipation and speculation among investors, leading to increased trading activity and price fluctuations. Moreover, the release of financial reports during different quarters can coincide with market trends and external factors, such as regulatory changes or major news events, which can amplify the volatility. Therefore, it is important for cryptocurrency traders and investors to consider the timing of financial reporting when analyzing and predicting price movements.
- Dec 25, 2021 · 3 years agoAccording to a study conducted by BYDFi, the choice between fiscal quarter and calendar quarter does have an influence on the volatility of cryptocurrency prices. The research found that during fiscal quarters, when companies release their financial reports, there tends to be higher volatility in the cryptocurrency market. This can be attributed to the fact that investors react to the financial performance of companies and adjust their trading strategies accordingly. On the other hand, during calendar quarters, when financial reporting is not a major factor, the volatility tends to be relatively lower. However, it is important to note that other factors, such as market sentiment and external events, can also contribute to price volatility in the cryptocurrency market.
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