Three Reasons For The Recent Market Correction
It’s been revealed that there is a popular crypto analyst who laid out the factors that he explained have recently pushed the markets to a correction. It’s been revealed that the host of InvestAnswers said that the curre...
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Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
It’s been revealed that there is a popular crypto analyst who laid out the factors that he explained have recently pushed the markets to a correction.
It’s been revealed that the host of InvestAnswers said that the current bearish price action is a response to three things.
First, he cited data from the analytics firm CryptoQuant that shows a recent spike in Bitcoin miner outflow.
The analyst said this:
“These miners are desperate to raise cash to buy rigs, so they can mine more Bitcoin, and that’s the whole endgame here. Sometimes they have to sacrifice what they would otherwise HODL on their balance sheet just to get more Bitcoin.”
The host also noted that BTC is suffering from “cascading liquidations” that match totals hit most recently in late February.
The third factor that he mentioned and said that has been pushing down the crypto market is “fear of the yield curve,” according to the analyst.
As the online publication the Daily Hodl notes, the yield on the 10-year U.S. Treasury briefly fell below the yield on the 2-year U.S. Treasury at the beginning of April.
“Typically, short-term bond yields should be less than the long-term bond yields, and if they’re not, things are broken… If you look at the typical history of inversion, there was a big inversion before the dot-com bubble, boom, followed by a nasty recession that lasted nearly a year and a half.”
Ethereum sees bullish predictions despite correctionsIt’s been revealed that the crypto analytics firm Santiment is really bullish about Ethereum. Check out the latest reports coming from them below.
The firm just revealed the bullish prospects that it has for Ethereum. In a new blog post, Santiment said that the Market Value to Realized Value (MVRV) metric of Ethereum (ETH) over the past seven days (7D) shows that ETH is near the “opportunity zone.”
Just in case you don’t know, this is where typically the price bottoms out.
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