The opinions of experts may not coincide with your position. I do not give investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset
The recovery from last year's crypto market crash has been linked to a global revival of interest in risk assets amid expectations that central banks will slow interest rate hikes and possibly cut borrowing costs later this year as high inflation subsides.
As Glassnode analysts note, at the end of January, the crypto market experienced the strongest monthly price increase since October 2021, which was facilitated by both record demand in spot markets and the massive closing of short positions (“short squeeze”) by traders.
The current rally has returned a significant part of the market to profit, the researchers conclude, citing data in the blockchain and their own indicators. The massive outflow of funds from crypto exchanges that followed the collapse of FTX has decreased to a neutral level and is now balanced by a “motivated influx” of traders’ assets into the wallets of trading platforms.#BTC$BTC