Analyst: The rising trend in the cryptocurrency market could potentially be linked to favorable stock market conditions and a broader risk preference
Kyle Rodda, senior market analyst at Capital.com, believes that the rise of the cryptocurrency market can be linked to positive stock market trends and broader risk preferences. He mentioned that meme coins have also made a comeback recently, showing irrational risky behavior in the market, which is identical to some areas of the stock market. As for Bitcoin's sharp fall after breaking its record high, market insiders believe it is a normal profit-taking move as almost all Bitcoin investors are making money now. In fact, this also reflects Bitcoin's volatility characteristics; past cycles show that Bitcoin can surge 1000% within a year but has also lost nearly three-quarters of its value.
Ayesha Kiani, Director of Operations at cryptocurrency hedge fund MNNC Group said that there tends to be large-scale sell-offs after Bitcoin hits new highs in the past so she expects some adjustments in the 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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