Billions of dollars of capital are returning to cryptocurrency markets after last week’s correction, says one closely followed analyst.
Earlier this month, digital assets saw a deep corrective move as the total market capitalization of cryptocurrencies fell from $1.70 trillion to $1.50 trillion in a single day.
Analyst Ali Martinez told his 39,700 followers on social media platform
“Following the recent tremor, there has been a notable recovery, with more than $2.5 billion flowing into the IMF. encryption market. This influx may indicate renewed investor confidence and a rebound in the market!
At the time of writing, the total cryptocurrency market cap is $1.60 trillion.
Looking more closely at Bitcoin, Martinez says the potential approval of spot Bitcoin-based exchange-traded funds (ETFs) likely isn’t fully priced in yet. According to the analyst, the cryptocurrency markets are far from hot which means traders will not turn to investing. Everything before the upcoming event.
“The estimated leverage ratio across all exchanges has fallen to its lowest level in two years. This shows… Bitcoin Traders are adopting a more cautious approach, reducing the use of borrowed funds while they wait for regulatory clarity.
While traders avoid using excessive leverage, Martinez says crypto whales may be in the midst of a rapid bitcoin accumulation in anticipation of the SEC potentially approving a slew of bitcoin ETF applications this week.
“In the past 24 hours, Bitcoin has seen the largest spike in transactions exceeding $100,000 in nearly two years. The 16,900 large transactions act as a proxy for Bitcoin whale activity, and provides insight into how these major players are positioned in the world encryption market.”
At the time of writing, Bitcoin is worth $44,091.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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