Bitcoin Ethereum is trying to extend its rebound this Wednesday with gains of over 4%, and remains at $57,000. Meanwhile, Ethereum advances 0.7% to $2,500.
Meanwhile, most major altcoins are also trading up more than 6%, led by Polkadot (6.5%), Near Protocol (6.1%) and Dogecoin (5.9%).
Bitcoin eases after financial crash: analysts’ opinion
All this in one Market trying to regain its feelings after Monday’s global collapsedriven by concerns about the deterioration of the economy, which was responded to with a rebound on Tuesday. Analysts at Link Gestión highlight that “the statements of the Bank of Japan (BoJ) Deputy Governor Sinichi Uchidain which it states that as long as the financial and capital markets are unstable, the central bank will not raise its interest rates again, helped calm tempers and boosted Asian markets“.
From Julius Baer They recall that in recent days, “more than $300 billion was wiped out of digital asset markets as Bitcoin fell by more than 20%, marking one of the biggest drops since the disastrous 2022,” and highlight that “This time, the crypto correction is about technical factors and flows, not fundamentals“.
In addition, they consider that the latest sales “have been exacerbated by the Speculation that crypto market makers are shifting their risk to centralized exchangespresumably for liquidation.”
“Bid-ask spreads, slippage and liquidations have widened significantly, dragging down a significant portion of market depth. Overall, Order books have been affected and volatility should be expected in the future “As the rest of the downstream factors continue to fade away,” he anticipates. Manuel VillegasHead of Next Generation Research at Julius Baer.
In this way, this analyst considers that bitcoin and the rest of cryptocurrencies are paying for the concerns about the global economy, since the correction “this time has not been triggered precisely by ascending cryptographic factors, but rather by Recession fears coupled with the easing of the dollar-yen carry trade, growing conflicts in the Middle Eastweaker-than-expected earnings from some tech giants and U.S. politics.”
“In general, The Bitcoin blockchain, as well as the Ethereum blockchain, continues to function as expectedalthough investors have not escaped unscathed, as more than 125,000 long positions worth $471 million have been liquidated in the past 24 hours. Open interest has fallen in perpetual futures, from $19 billion to around $16 billion over the past two days,” he notes.
What will happen to the price of Bitcoin?
Looking ahead, he stresses that “Bitcoin is largely behaving in line with risk assets, and the rest of the cryptocurrencies even more so, which at the threshold are mostly high beta bets on Bitcoin.” With this in mind, he sees “Exchange-traded fund (ETF) inflows are likely to behave in line with overall market sentimentand since Thursday, US spot Bitcoin ETFs have shown net outflows of nearly $400 billion.”
“The uproar around crypto market makers moving capital away from centralized exchanges has greatly increased fears. Investors are waiting for a continuation, although the effects are likely to be fully felt during the US trading session.. Overall, order books have been affected and volatility should be expected going forward as the remaining downside factors continue to fade,” he said.
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Source: Ambito
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