Lucas Kiely, chief investment officer of digital wealth platform Yield App, says that today’s tumble in crypto asset prices, driven by macro factors, will likely be short-lived.
He adds that a wave of good news this week, “including the launch of Europe’s first spot bitcoin ETF and Coinbase winning approval to offer US futures, should help the market find momentum again, with a recovery to $27,000 for bitcoin a positive signal to look for.”
Lucas Kiely, chief investment officer of digital wealth platform Yield App, says:
“In the last 24 hours, crypto markets have witnessed a significant sell-off, with bitcoin plunging to a two-month low as it slipped over 8% to under $25,659, while ether hit its lowest level since March at $1,576. While rumors initially circulated that SpaceX partially sold some bitcoin holdings, multiple factors that are beyond the realm of crypto seem to be affecting sentiment. These include rising bond yields in the US along with Chinese property giant Evergrande filing for US bankruptcy protection, which has in turn impacted the Chinese yuan and indirectly influenced bitcoin sentiment.”
He also noted:
“Bitcoin and ether have already initiated a recovery today, suggesting the sharp tumbles were liquidation events. Yet it remains uncertain if the assets can fully reverse this downward trend. There are, however, reasons for optimism despite the challenges. These include the approval of Europe’s first spot bitcoin ETF and Coinbase’s approval to offer US futures, which have the potential to rekindle hope and momentum in the market.”
He also mentioned:
“A week-end close of around $27,000 for bitcoin could restore momentum, driven by increased interest and regulated exposure to the asset from the European ETF. All in all, though, this week’s developments emphasize the inherent nature of crypto, characterized by its susceptibility to both peaks and troughs.”