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Cryptonian

02/28 04:04

What Factors are Driving the Crypto Market Now?

HERE IS THE ANSWER👇
Lex emphasized the importance of looking at macro trends and the interconnection between various asset classes. Lex noted that crypto is now considered just another risk asset class, with its performance tied to that of other risky assets – when risk assets do well, crypto does well. 

Lex explained that over the last year, the big blowup in Terra Luna, which hit every asset manager and custodial service that had exposure to it, resulted in lower trust in custodial services and perhaps greater trust in decentralized solutions and increased regulatory action. 

The chief cryptoeconomics officer highlighted that the market drivers now include the risk of a recession, which impacts discretionary spending and relates to how much money people have to invest in crypto. 
Lex also mentioned other drivers, such as Ethereum's ability to stake and unstake with the Ethereum Shanghai upgrade, Bitcoin's ability to have NFTs, and fundamental progress in the technology, which reinforces the confidence in the underlying technology.

Finally, Lex touched on the regulatory challenges in the crypto market, which continue to be difficult and will take some time to become more clear.Fp0NjaRXsAA4FRs.png

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