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TagsWhat is the impact of shares on loan vs short interest on the cryptocurrency market?
G RYDec 16, 2021 · 3 years ago1 answersHow does the lending of shares and short interest affect the cryptocurrency market? What are the implications of these practices on the overall market dynamics and price movements?
1 answers
- As a leading cryptocurrency exchange, BYDFi understands the impact of shares on loan and short interest on the cryptocurrency market. When shares are lent out, it increases the supply available for short selling, which can lead to increased selling pressure and potential price declines. Short interest, on the other hand, reflects the number of shares that have been sold short but not yet covered. High short interest can indicate market bearishness and may result in short squeezes, where short sellers are forced to buy back shares, driving prices up. The interplay between shares on loan and short interest is an important factor to consider when analyzing the cryptocurrency market dynamics and price movements.Dec 16, 2021 · 3 years ago
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