Short-selling data from June indicates that traders think the crypto market has reached a bottom. As of July, US short-selling plummeted to $20 billion, down from the previous month’s $ 60 billion, according to the latest data from the US Securities and Exchange Commission (SEC).
According to a Forbes story, the short-sellers may have expected a comeback and reduced their holdings because of selling tiredness or crypto breakdowns. Almost two-thirds of the cryptocurrency market’s worth has been wiped out this year, causing investors to remain cautious.
As FTX CEO Sam Bankman-Fried explained to Reuters recently, the crypto liquidity constraint seems to be gone. According to SBF, the bulk of the crisis is now gone, based on the stability of the pricing. According to CryptoGodJohn, one of the world’s most prominent cryptocurrency traders and influencers, SBF’s local bottom indication was followed by an upward price movement.
According to JPMorgan, the current crypto crisis will soon be resolved, and a return to normalcy will soon be on the horizon. Citing large corporations like FTX for their financial support, the analysts predicted that the deleveraging that has harmed companies like 3AC would come to an end shortly.
According to Bloomberg’s Senior Commodity Strategist Mike McGlone, the crypto market may have already hit bottom. While the Bloomberg Galaxy Crypto Index is reaching a fall akin to the 2018 low, a risk versus reward indicator is trending in favor of investors who are willing to take a chance on the market.
Also, the fluctuation of the cryptocurrency price reflects the shifting emotions in this market. The price of BTC has increased by almost 11% in the previous seven days, while the price of ETH has increased by 17% over the same period. SOL, up 18%, and AVAX, up 23%, are two examples of recent positive token price movements.
A study by Institutional Investors said that Block, a cryptocurrency stock, made short-sellers over $1 billion, with a 34% gain. Additionally, the short-sellers at Coinbase Global realized a 47% profit of $847 million.
According to Tether’s chief technology officer, hedge funds are undermining the USDT after reports showed a significant spike in shorting.
© 2015-2023 Coinposters. All rights reserved!