Cryptocurrency Market Dip is a Short-Term Adjustment, Not a Long-Term Trend Change
CryptoNewsTerminal Staff10 Sep, 2024
Cryptocurrency Market Dip is a Short-Term Adjustment, Not a Long-Term Trend Change
Zhou Le Le, CEO of Hong Kong-based Victory Securities, recently stated that while Bitcoin's price has dropped due to significant outflows from BTC spot ETFs, it should be viewed as a temporary correction rather than a reversal of the long-term trend, assuming positive market sentiment persists. This is supported by the sustained high open interest in Bitcoin futures, indicating continued capital presence in the market. Furthermore, Le Le highlighted the widening gap between large-cap and mid/small-cap companies in the US stock market, similar to levels seen during the dot-com bubble in 2000. If a shift occurs where funds flow from large to mid- and small-cap companies, it could potentially exert downward pressure on cryptocurrencies.
