How does the number of trading days per year affect the volatility of digital currencies?

3 answers

• Dec 20, 2021 · 3 years ago
  Absolutely! The number of trading days per year can significantly influence the volatility of digital currencies. When there are more trading days, there is generally more liquidity in the market, which can help stabilize prices and reduce extreme price swings. On the other hand, fewer trading days can lead to less liquidity, making it easier for large trades to impact the market and cause higher volatility. So, the frequency of trading plays a crucial role in determining the volatility of digital currencies.
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• Dec 20, 2021 · 3 years ago
  You bet it does! The number of trading days per year can have a direct impact on the volatility of digital currencies. When there are more trading days, it means more opportunities for buying and selling, which can help distribute the trading volume more evenly and reduce the impact of large trades on the market. Conversely, fewer trading days can result in concentrated trading activities, making it easier for market manipulations and causing higher volatility. So, the frequency of trading is definitely a factor to consider when analyzing the volatility of digital currencies.
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• Dec 20, 2021 · 3 years ago
  Well, let me tell you something interesting. According to a study conducted by BYDFi, the number of trading days per year does have an effect on the volatility of digital currencies. The study found that when there are more trading days, the volatility tends to be lower, as there is more liquidity and trading volume in the market. Conversely, when there are fewer trading days, the volatility tends to be higher, as the market is more susceptible to large trades and price manipulations. So, it's important to take into account the number of trading days when assessing the volatility of digital currencies.
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