Expert Warning on Buying Bitcoin Post-Crash 🚫
According to Markus Thielen, CEO of 10X Research, buying the dip on Bitcoin this year is considered too risky after the recent crash. Despite this warning, some analysts are suggesting signs of stabilization in the market.
Market Uncertainty After Recent Events 📉
The recent Bank of Japan rate hike and subsequent recovery in the Nikkei 225 index indicate that market risks may not have been fully priced in yet. This uncertainty is affecting investor sentiment and causing fluctuations in both Bitcoin and traditional stock prices.
- The FedWatch tool shows that investors have mixed expectations about future interest rate cuts by the Fed.
- 65.5% of investors predict a 50 basis point cut to 4.75% – 5%.
- 32.5% expect a 25 basis point ease to 5% – 5.25%.
Analysts’ Perspective on the Market 📊
Despite the challenges in the market, some analysts believe that there are positive signs of stabilization and potential opportunities for investors. Here are some key insights shared by experts:
- On-chain analysis firm IT Tech reported a decrease in the leverage ratio to 0.1758, the lowest since early 2020.
- This indicates that traders are utilizing less borrowed funds in the current market.
- Open interest in derivatives contracts has also dropped to $14 billion, the lowest level since mid-2021.
The Path to Market Recovery 📈
Experts suggest that the market has undergone significant deleveraging post-crash, which could pave the way for more stability and potential recovery. It is essential to monitor market conditions closely to identify favorable entry points and potential risks.
Hot Take: Stay Informed and Stay Cautious! 🧐
As the market continues to navigate through uncertainties, it is crucial for investors to stay informed, exercise caution, and seek guidance from financial experts before making any investment decisions. Remember always to conduct thorough research and consider your risk tolerance before diving into the crypto market.
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