The prices of major cryptocurrencies, such as Bitcoin and Ether, show signs of recovery. Despite recent volatility, there are key factors and cautionary insights to consider as the market stabilizes.
Points
- Bitcoin and Ether prices are recovering, with Bitcoin up 6.5% and Ether up 7% in the past 24 hours.
- Bitcoin futures funding rate remains negative, indicating high demand for short positions.
- Recent market decline may not signal a new long-term trend.
- Researchers caution against assuming the current pullback marks the start of a new market cycle.
Crypto Price Recovery
Bitcoin and Ether have shown notable price recoveries. Bitcoin is trading around $55,000, up approximately 6.5% in the past 24 hours, though it remains down by 17% over the past week. Similarly, Ether is trading at around $2,450, marking a 7% increase since Monday afternoon. This recovery signals a potential stabilization in the crypto market after recent declines.
Certain Factors to Keep in Mind
Despite the price recovery, the Bitcoin futures funding rate has remained negative over the past 24 hours. This suggests a high demand for short positions, indicating that many traders are still betting on a decline in Bitcoin’s price. This ongoing market uncertainty reflects caution among traders, even as prices show signs of recovery.
A Word of Caution
In light of recent volatility, researcher Duong cautioned that the recent market decline does not necessarily signal the beginning of a new long-term trend. “The current pullback in the cryptocurrency market does not represent the start of a new market cycle. Rather, the current sell-off is consistent with our defensive approach in 3Q24 and a more constructive outlook for 4Q24, albeit the strength of this move tests our conviction,” he explained. This perspective urges investors to remain cautious and not assume the recovery marks the start of a new bullish cycle.
解説
- The recent recovery in Bitcoin and Ether prices suggests a potential stabilization in the crypto market.
- Negative Bitcoin futures funding rates indicate ongoing market uncertainty and a high demand for short positions.
- Researchers caution that the recent market pullback does not necessarily signal the beginning of a new long-term trend.
- Investors are advised to remain cautious and not assume the current recovery marks the start of a new market cycle.
- A defensive approach is recommended for 3Q24, with a more constructive outlook for 4Q24.