Cryptocurrency markets

The analyst explains the reasons for the recent fluctuations in the bitcoin rate

The analyst explains the reasons for the recent fluctuations in the bitcoin rate
The head of the institutional department of FalconX, Aya Kantorovich, shared her opinion on the surge in volatility in the cryptocurrency market and the impact of retail traders on the market drawdown, in particular the bitcoin rate. FalconX is an aggregator of cryptocurrency trading flows and has access to both retail and institutional market data
According to Kantorovich, liquidations on offshore trading floors, cascading liquidations and the inability of traders to access cryptocurrency trading platforms lead to a depreciation. When money cannot move, exchange rate drawdowns intensify.
The analyst explains the reasons for the recent fluctuations in the bitcoin rate

The analyst explains the reasons for the recent fluctuations in the bitcoin rate

“We watched the liquidation of BTC worth $ 2 billion. Retail liquidations accounted for a significant portion of this amount, and then there was a cascading effect. When there is such an increased level of volatility, some exchanges turn off trading and there is no way for traders to change orders, so you see an ongoing cascade. "
Kantorovich noted that many new institutions are forced to sell when the bitcoin rate reaches a certain threshold. Unlike the usual cryptocurrency whales that buy on price pullbacks, large asset management companies with billions of dollars rely on a completely different level of drawdown that they are allowed to maintain:
“Let's say the market is down 30%, they have a fiduciary obligation to take profits. These are not the impulsive "diamond hands" that we are so used to seeing in the crypto community. That is why we will see institutions on the market that do not count on long-term prospects. This can be both good and bad for the cryptosphere "

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