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Beginning on Thursday, crypto markets experienced a massive sell-off which affected most coins and brought down the total market capitalization of cryptocurrencies to $ 200 billion, down $ 25 billion in the space of a few hours in what was overall at the bearish week for cryptocurrencies as a whole , but ethereum in particular.
Behaviour of investors indicates that the market expects ethereum to fall even further.
Record ETH Shorts and Possible Reasons
Cryptocurrencies, ethereum appears to be the worst hit by the selloff. At the moment, more than 300,000 short positions have opened for sale as investors continue to bet on its price falling even lower.
A possible reason for this is the existence of sizeable ICO selloffs. In order to make up for the future, this will be done in the future. their continued project development and operations.
It will be recalled at the peak of the crypto bull market, which coincides with a steep jump in popularity of ethereum-based ICOs, ETH traded at about $ 1,500. Since then, it has fallen more than 90 percent, causing many investors and ICO treasuries to offload their holdings into order to avoid more losses.
A new school of thought in global equities. Thejas Naval, an analyst at Element Digital Asset Management disagrees with this notion, stating that recent price drops into the market.
In his words:
"There's a narrative that the crypto market was simply falling into lockstep with the equity markets, which are slowly entering into correction zones. We believe this move in cryptocurrencies had nothing to do with the stock market. "
According to Naval, there is no evidence that the price of bitcoins and global stock indexes have a little link between them. The recent mass selloff trend in the crypto market has also affected the market lodge bitcoin, which fell as low as $ 6,200 following the drop it experienced on Thursday.
Featured image from Shutterstock.
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