Matrixport: Never short a depressed market, multiple factors may stimulate an explosive rebound in the crypto market

According to TechFlow, Matrixport released a chart today saying that as the total market value dropped from US$2.7 trillion to US$2.3 trillion, the daily trading volume of cryptocurrencies also dropped from US$180 billion to US$50 billion.

There is a saying in traditional finance that “don’t short a down market” because any little momentum can push prices higher. This may also apply to the crypto market because during the summer downturn, the market may see an explosive rebound given multiple possible stimulus factors (such as the Fed’s rate cuts, the US presidential election, etc.).