Reading time: ~2 m
The cryptocurrency market has declined as financial markets around the world have begun to cool down due to ongoing macroeconomic concerns and some companies have shared views on the immediate prospects for ETH.
Market maker QCP Capital noted a bearish reversal of the crypto market and, although there was no specific trigger for the sale, certain events contributed to a negative attitude towards risk. First, Fed officials reject the idea that higher consumer price index data will lead to less aggressive policies:
“The stock market has started to trade at lower levels, yields are rising and the U.S. dollar is rising”
In addition, the company noted rumors about the possible sale by Jump Crypto of significant volumes of its assets in ETH before the merger in order to fix profits on long positions on the asset.
QCP Capital summed up that significant profit taking led to the liquidation of long positions using borrowed funds opened as a result of a decent rally and this was especially noticeable in the example of ETH, the rate of which rose by more than 130% due to news about the merger.
Crypto trading company Cumberland, represented by the head of the trading division, John Van Burgh, shared some thoughts on the more positive aspects of the crypto market:
“Unlike the apathy that has been a defining characteristic of past crypto winters, the current market boasts impressive trading activity.”
Van Burg noted that the volumes for BTC and ETH exceed the daily indicators of S&P 500 derivatives on major exchanges:
“First of all, there was an idea that the sphere of digital assets has reached the point of implementation, when the volumes and sum of open positions compete with the volumes of the most important products in the financial world”
#Crypto #companies #called #reasons #decline #rate #ETH