A market anomaly describes a deviation from expected market behavior or established financial theories, particularly in terms of asset pricing or trading patterns. These irregularities might present temporary inefficiencies that skilled traders attempt to exploit. Anomalies can result from information asymmetry, behavioral biases, or structural market limitations. They are often short-lived as markets adjust.
Context
In the rapidly evolving cryptocurrency markets, market anomalies can occur due to factors like varying liquidity, fragmented exchanges, or rapid news dissemination. News articles sometimes report on unusual price movements or trading opportunities that defy conventional explanations. Identifying and understanding these anomalies is a focus for quantitative analysts and algorithmic traders.
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