Cycle Capital: Crypto Market Currently Lacks Support for Hitting New Highs
Cycle Capital's latest research report indicates that the cryptocurrency market has had a strong reaction to Federal Reserve Chairman Powell's speech at the Jackson Hole Conference, in contrast to traditional financial markets. Analysis suggests that this may be due to a squeeze caused by excessive short positions, as well as differences in the understanding of macro news rhythms among cryptocurrency market participants.However, Cycle Capital questions whether the current market environment is sufficient to support a cryptocurrency surge to new highs, pointing out that it typically requires loose macro environments, risk appetite, and support for native cryptocurrency themes. Currently, the market lacks strong themes such as NFT, DeFi, spot ETFs, or meme crazes, except for Telegram's ecosystem growth.The report also notes that the inflow rate of Bitcoin ETFs has slowed significantly since April, matching its peak in March.Cycle Capital believes that if risk-free rates decline, it may attract more investors to enter the Bitcoin market. In addition, the report mentions that the cryptocurrency market may have misunderstood the significance of the downward revision of US non-farm employment data, seeing it as a sign of a significant interest rate cut. On the political front, a rise in Trump's approval rating may be favorable for the cryptocurrency market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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