The sudden crash on the market on Friday, which led to some cryptocurrencies that dropped nearly 95% under 24 hours, did not signal a long-term bearish perspective or destruction of foundations, according to investment analysts in Kobeissi’s letter.
Meltdown of Friday has been triggered by a perfect storm of short-term factors, including “excessive action and risk,” and US president Donald Trump’s announcement of 100% tariffs in China, the analysts write.
Kobeissi’s letter cited the heavy -tempered market bias, with $ 16.7 billion in long -term liquid compared to just $ 2.5 billion in short positions, a ratio of about 7: 1.
In addition, Trump’s announcement came around 5pm on Friday, when the market’s liquidity was thin, creating a fertile soil for increased price volatility and large, outsized moves. Kobeissi’s letter added:
“We believe this crash is due to the integration of many sudden technical factors. It has no long-term basic implications. A technical correction is excessively repairing; we think a trading deal will reach, and crypto remains strong. We are bullish.”
Crypto Market crashing on Friday tested a $ 20 billion cascade of fluids.
Related: Crypto’s sentiment folked up ‘fear’ as Bitcoin dropped after Trump’s tariffs
Analysts encourage care for a short time while entrepreneurs are washed out of markets
Bitcoin (Btc) Investors and merchants should Expect price volatility In the short term as markets digest Trump’s tariff announcement and the implications of macroeconomic, according to Cory Klippsten, CEO of Bitcoin Services Company Swan Swan Bitcoin.
The market route is to “wash entrepreneurs and weak hands,” and combine to provide fuel for the next rally to new highs, Klippsten told Cointelegraph.
Other analysts and merchants say $ 20 billion in liquid crypto represents the end of the icebergAnd reported losses are just one part of real financial damage to markets and participants.
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