Will the recent Bitcoin crash end the bullish cycle? – Blockchain news, opinions, TV and work

As Bitcoin fell further from US$53,940 to US$42,874, most of the altcoins subsequently collapsed, and the crypto market fell sharply in the early hours of Saturday morning. Many investors are shocked because they hope or even expect the opposite result; the upward rebound into the end of the year.according to Global block Sales trader Marcus Sotiriou, the reason behind it is the huge decline of crypto whales, they have been transferring bitcoins from their wallets to exchanges at an alarming rate.

“Whales” are well-funded cryptocurrency investors who can drive the market through large amounts of buying and selling. Given that the market value of crypto assets is relatively small compared with other industries, the trend of crypto whales can indeed influence the market to move in either direction when a large number of buy or sell orders are placed. It is said that only about 1,000 whales occupy 40% of the entire Bitcoin market.

But the recent crash may also be driven by several other factors. Well-known investor Louis Navellier (Louis Navellier) warned that the Fed’s downsizing could cause the Bitcoin and cryptocurrency bubbles to burst.In an interview with the London news media Insider, Navellier said Fed balance sheet reduction “Risk assets should be revised, of which Bitcoin is part of it.”

According to Sotiriou, the crash also boiled down to a series of liquidations, as the leveraged position of more than $2 billion was emptied on Saturday. The fact that deleveraging took place on a Friday night in the United States coincided with a weekend in Asia, which was one of the periods of lowest liquidity, and this fact exacerbated this deleveraging. This means that even if the leverage is actually lower than the previous crash, the impact is still significant. This shows that although the market has become more efficient over time, there is still a long way to go to avoid these forced selling situations.

In addition, there are concerns about the new Euromicro variants, and concerns that Evergrande is closer to defaulting. But Sotiriou emphasized that, in his view, the most important thing is that institutions hope to make profits before the end of the year to manage risks. However, he believes that this will not be the end of the bull market cycle. He believes that this sell-off has given the attention of the extended cycle theory that the bull market may continue into 2022, which is contrary to many analysts’ expectations. 2021 will be among the best.

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