A closely watched analyst says billions of dollars in capital are returning to crypto markets after last week's correction.
Earlier this month, digital assets witnessed 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 tells his 39,700 followers on social media platform
โAfter the recent shock, there has been a remarkable resurgence, with more than $2.5 billion returning to the crypto market. This influx could mean renewed investor confidence and a market recovery!
At the time of writing, the total crypto market capitalization is around $1.60 trillion.
Taking a closer look at Bitcoin, Martรญnez says possible approval of spot operations btc Exchange-traded funds (ETFs) may not be fully discounted yet. According to the analyst, crypto markets are far from overheated, which means that traders are not going to go all out before the long-awaited event.
โThe estimated leverage ratio across all stock markets has fallen to its lowest level in two years. That shows btc Traders are taking a more cautious approach, reducing the use of borrowed funds while awaiting regulatory clarity.โ
While traders avoid using excessive leverage, Martinez says crypto whales may be in the midst of a rapid accumulation of BTC in anticipation that the US Securities and Exchange Commission (SEC) may approve a large amount. of Bitcoin ETF applications this week.
โIn the last 24 hours, Bitcoin saw its largest increase in transactions over $100,000 in almost two years. The 16,900 large transactions serve as an indicator of btc whale activity, offering insights into how these important players could position themselves in the crypto market."
At the time of writing, Bitcoin is worth $44,091.
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