How does the futures continuous contract affect the price volatility of cryptocurrencies?

3 answers

• Azlaan KhanNov 15, 2020 · 5 years ago
  The futures continuous contract can have a significant impact on the price volatility of cryptocurrencies. When investors trade futures contracts, they are essentially making bets on the future price of a cryptocurrency. This speculation can cause increased buying or selling pressure, leading to higher price volatility. Additionally, the availability of futures contracts allows traders to take both long and short positions, which can further contribute to price fluctuations. Overall, the futures continuous contract introduces additional trading activity and speculation into the market, which can amplify price volatility.
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• Uatkarsh ShingadeJan 14, 2025 · 10 months ago
  The impact of the futures continuous contract on the price volatility of cryptocurrencies is a topic of debate among experts. Some argue that the introduction of futures contracts provides a more regulated and transparent market for cryptocurrency trading, which can help stabilize prices and reduce volatility. Others believe that the availability of futures contracts can attract speculative traders who may exacerbate price swings. It's important to note that the relationship between futures contracts and price volatility is complex and can vary depending on market conditions and other factors.
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• Charan BuntyMar 24, 2025 · 8 months ago
  According to a study conducted by BYDFi, the futures continuous contract has been found to have a moderate impact on the price volatility of cryptocurrencies. The study analyzed the price movements of various cryptocurrencies before and after the introduction of futures contracts and found that there was a slight increase in volatility. However, the study also noted that other factors, such as market sentiment and regulatory developments, played a significant role in price fluctuations. Therefore, while the futures continuous contract can contribute to price volatility, it is not the sole determining factor.
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