In addition, Arthur Hayes, a leading cryptocurrency investor, made important comments about Bitcoin’s recent price moves. In a recent social media post Hayes, founder of BitMEX, told investors that the market has not yet reached’safe recovery phase’ in.
Hayes said that the price hike in Bitcoin’s recent rise may not mean a permanent trend reversal. According to the renowned investor, “Bitcoin still has a close relationship with SaaS (Software as if Service) technology companies in the US.” That means the crypto asset is not entirely independent of traditional technology stocks in its price behavior, he said.
This increase could be a short-lived recovery called ‘dead cat bounce’, according to Hayes, who said it was “very common” in markets for the current rise. Financial markets use this term for a short rise in prices following ‘a long downtrend’ followed by another decline. This expression comes from the analogy that “even a cat falling from soaring will bounce briefly when it hits the ground”. , ” and.
The market has not yet fully departed the risky zone, said the veteran investor. Hence, he said investors should take a more cautious approach to investing rather than “acting in the way we have done so quickly.” Hayes said that “the most important effect on crypto markets is the macroeconomic developments and price movements in the technology sector, particularly those of a particular type of company,” Hayinger said.
With a recent increase in volatility in crypto markets, analysts have considered various possible scenarios; Hayes’ tests once again point to the need for investors to approach short-term rallies cautiously.
*This is not investment advice.
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