Ryan Lee, chief analyst at Bitget Research, pointed out the main reasons for the market recovery in a conversation with BeInCrypto editors.
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1. Institutional influence
Sold by the German government All of its cryptocurrencies ended short-term BTC selling pressure. Meanwhile, the 2014 collapse Cryptocurrency Exchanges Mt. Gox tested on-chain transfers. Meanwhile, the platform has yet to conduct significant Bitcoin payments, which represents Announced in June 2024The panic surrounding the incident gradually subsided.
Li Ruian also recalled that in the second half of this year, 2021 collapsed. FTX will end payments With $16 billion worth of assets set to enter the market, such a large infusion could increase cryptocurrency purchases.
According to our interlocutors, a combination of factors has formed institutional support for the recovery of the cryptocurrency market.
2. Support from the United States
This weekend, Republican presidential candidate Donald Trump Survived an assassination attempt We recall that previously the editors of BeInCrypto wrote about the chances of politicians winning on the prediction market in the context of this event. coming Up to 70%.
Ryan Lee pointed out that the Republican Party represented by Trump’s support for cryptocurrency is reflected in several aspects:
3. Funds flow into spot BTC-ETF
Funds resume inflow Spot BTC-ETF According to our interlocutor, this effectively offsets the German government’s Bitcoin sales. Fund investments induce issuers to buy cryptocurrencies from the market. Thus, inflows into spot Bitcoin ETFs push up Bitcoin prices and prevent them from falling during periods of selling pressure.
4. Net inflow of funds from BTC derivatives
Ryan Lee pointed out that the sharp drop in BTC in the short term has caused frequent liquidation of derivatives traders, leading to the pain of deleveraging (The process of reducing leverage (i.e. debt levels)).
“Currently, the number of open interest in market contracts has increased by $2.5 billion, the implied volatility of BTC options in the short term has risen to 49%, and the price of call options is higher than that of put options, indicating that options are bullish in the short term. ”, our interlocutor noted.
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