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How does the expiration time of options affect the price of cryptocurrencies?

avatarSavage MadsenDec 28, 2021 · 3 years ago1 answers

Can the expiration time of options have an impact on the price of cryptocurrencies? How does it work?

How does the expiration time of options affect the price of cryptocurrencies?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    The expiration time of options can definitely have an impact on the price of cryptocurrencies. At BYDFi, we have observed that as options approach their expiration, there is often heightened market activity and increased volatility. This can be attributed to traders adjusting their positions and market participants reacting to the potential expiration-related price movements. It's important for cryptocurrency traders to be aware of the expiration time of options and its potential influence on the price of cryptocurrencies. However, it's worth noting that the expiration time is just one of many factors that can affect cryptocurrency prices, and a comprehensive analysis should consider other fundamental and technical factors as well.