What Can We Learn From This Crypto Market Crash?
While explanations for what caused this crash, one of the main reasons was that a main Chinese real estate company, The Evergrande Group could default on
While explanations for what caused this crash, one of the main reasons was that a main Chinese real estate company, The Evergrande Group could default on its debts, which could weaken the world’s second-largest economy. One main development that stood out was that cryptocurrencies seemed to move in the exact same direction as more traditional markets, which hasn’t always been like that. Did this phenomena cause the Crypto Market Crash?
An Analysis of the Crypto Market Crash
Some analysts discussed this situation, offering different opinions:
Conclusion – Market Crash Summary
Tokens are surprisingly exposed to various markets and nations. If you come to crypto with a US-centric view, you will be surprised in moments like these when something that has nothing to do with the US affects the market in a massive way.
- Joe DiPasquale, the founder of BitBull Capital, stated that the influx of institutional investors made the markets become more and more correlated. They are increasing as the pool of market participants across the crypto market becomes more standardized.
- Tim Enneking, director of Digital Capital Management, had a similar approach, saying that cryptos are more correlated to fiat because more investors in fiat are now investing in crypto.
Alejandro Navarro
I worked as a Financial Analyst for Bloomberg. Co-founder of inverligentes.com Passionate about cryptocurrencies, blockchain and everything related.
While explanations for what caused this crash, one of the main reasons was that a main Chinese real estate company, The Evergrande Group could default on its debts, which could weaken the world’s second-largest economy. One main development that stood out was that cryptocurrencies seemed to move in the exact same direction as more traditional markets, which hasn’t always been like that. Did this phenomena cause the Crypto Market Crash?
An Analysis of the Crypto Market Crash
Some analysts discussed this situation, offering different opinions:
Conclusion – Market Crash Summary
Tokens are surprisingly exposed to various markets and nations. If you come to crypto with a US-centric view, you will be surprised in moments like these when something that has nothing to do with the US affects the market in a massive way.
- Joe DiPasquale, the founder of BitBull Capital, stated that the influx of institutional investors made the markets become more and more correlated. They are increasing as the pool of market participants across the crypto market becomes more standardized.
- Tim Enneking, director of Digital Capital Management, had a similar approach, saying that cryptos are more correlated to fiat because more investors in fiat are now investing in crypto.
Alejandro Navarro
I worked as a Financial Analyst for Bloomberg. Co-founder of inverligentes.com Passionate about cryptocurrencies, blockchain and everything related.
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