Questions tagged [short-term capital flow]

Caterina Thu Aug 29 2024 | 7 answers 1360

Can you elaborate on how cryptocurrencies typically behave during instances of short-term capital flow? Are they known to exhibit stability or are they more prone to significant fluctuations? Do investors tend to flock to or abandon cryptocurrencies in response to such flows, and if so, what factors drive these decisions? Additionally, how does the overall market sentiment and regulatory environment impact the performance of cryptocurrencies during periods of short-term capital movement? Understanding these dynamics could help investors navigate the potentially volatile nature of the crypto market.