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How does quad witching affect cryptocurrency prices?

avatarAutomataNum4Dec 17, 2021 · 3 years ago3 answers

Can you explain how quad witching impacts the prices of cryptocurrencies? I've heard that it has an effect on the market, but I'm not sure how it works.

How does quad witching affect cryptocurrency prices?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    Quad witching, also known as quadruple witching, refers to the simultaneous expiration of four different types of financial derivatives, including stock index futures, stock index options, stock options, and single stock futures. This event occurs on the third Friday of March, June, September, and December. While quad witching primarily affects the stock market, it can indirectly impact cryptocurrency prices as well. The increased trading volume and volatility in the stock market during quad witching can spill over into the cryptocurrency market, leading to price fluctuations. However, the impact is usually short-term and may not have a significant long-term effect on cryptocurrency prices.
  • avatarDec 17, 2021 · 3 years ago
    Quad witching is a term used to describe the expiration of four different types of financial derivatives on the same day. While it primarily affects the stock market, it can also have an indirect impact on cryptocurrency prices. During quad witching, there is typically increased trading activity and volatility in the stock market, which can spill over into the cryptocurrency market. This increased volatility can lead to short-term price fluctuations in cryptocurrencies. However, it's important to note that quad witching is just one of many factors that can influence cryptocurrency prices, and its impact is usually temporary.
  • avatarDec 17, 2021 · 3 years ago
    Quad witching is an event that occurs on the third Friday of March, June, September, and December, where four different types of financial derivatives expire simultaneously. While quad witching primarily affects the stock market, it can also have an impact on cryptocurrency prices. During quad witching, there is often increased trading volume and volatility in the stock market, which can spill over into the cryptocurrency market. This increased volatility can lead to short-term price movements in cryptocurrencies. However, it's important to remember that quad witching is just one factor among many that can influence cryptocurrency prices, and its impact may not be long-lasting.