Crypto Market in Turmoil: Supply Imbalance Persists, Sell-Off Concerns Mount

IconCryptoNewsTerminal Staff30 Aug, 2024

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Crypto Market in Turmoil: Supply Imbalance Persists, Sell-Off Concerns Mount

Cryptocurrency analysts at Kaiko have determined that the crypto market continues to grapple with a significant supply imbalance, contributing to sustained selling pressure. This trend, observed throughout the summer, is expected to persist for several months as major players, including governments and Tesla, potentially liquidate their holdings. Governments such as the US, UK, China, and Ukraine have been actively selling their crypto assets, adding to the market supply. Tesla, which has not made any significant transactions since 2022, could further exacerbate the sell-off if it decides to offload its bitcoin reserves to raise capital. This ongoing supply imbalance has weighed heavily on the market, leading to depressed prices and limited recovery prospects. As long as this imbalance persists, the crypto market may continue to face headwinds and experience volatility. Investors are advised to exercise caution and monitor market developments closely.

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