How does high short interest affect the price of cryptocurrencies?

1 answers

• Nov 28, 2021 · 3 years ago
  As a representative of BYDFi, I can say that high short interest can indeed impact the price of cryptocurrencies. When there is a high short interest, it indicates that there is a significant number of traders who believe that the price of the cryptocurrency will decline. This sentiment can create selling pressure and push the price down. However, it's important to note that short interest is just one factor that can influence the price of cryptocurrencies, and it should be considered alongside other market factors. It's always recommended to conduct thorough research and analysis before making any investment decisions in the cryptocurrency market.
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