What’s keeping retail and institutional investors warm in the crypto winter?
Bitcoin has found support above US21,000, but it remains to be seen if it can hold on to those modest gains, while alts have also moved higher as crypto moves in tandem with equities. All eyes are now on the Bitcoin options market, with $2.25 billion worth of options set to expire in the next 24 hours and most punters overpredicting the coin’s growth potential.
Analysts fear the event could cause mass selloffs across the market pushing the price down to test recent lows. In the latest news, with the cascade of crypto financials teetering at the edge, cryptocurrency futures exchange CoinFLEX has temporarily halted withdrawals due to the extreme volatility with the CEO referring to uncertainty involving an unnamed counterparty. Meanwhile, Voyager Digital has cut withdrawal amounts as the ripples from 3 Arrows Capital collapse continue through DeFi and CeFi markets. Voyager Digital’s share price dropped 60% after revealing it had lent $655 million to the defunct fund. So how is this structural risk, combined with the broader risk off sentiment of among investors in speculative assets, affecting confidence?
Ian Lowe from Dacxi explores the current market movements and what’s driving them.