CryptoQuant’s CEO, Ki Young Ju, recently shared his insights on the current state of the Bitcoin and broader cryptocurrency markets. He believes a key factor hindering a significant rally is the overall sentiment in the United States.
US Sentiment is Key
Ju, who boasts a large following on X (formerly Twitter), stated that the crypto market’s sluggishness will likely continue until US sentiment improves. He emphasized that this is the primary factor currently impacting market movement.
Market Fundamentals Remain Strong, Despite Slow Activity
Despite the slow market, Ju maintains a positive outlook on the long-term fundamentals. He notes a lack of significant on-chain activity and neutral key indicators, but these are not necessarily negative signs. He points to continued strong fundamentals, such as more mining rigs coming online, as evidence that the bull market isn’t over yet. He even suggests that a market downturn would be undesirable for various market players, from large investors to traditional finance.
Ethereum: Not in a Distribution Phase
Turning to Ethereum, Ju clarifies that the second-largest cryptocurrency isn’t currently in a distribution phase. A distribution phase typically precedes a bear market, characterized by sideways price movement before a significant drop. He notes that the current liquidity from retail investors is weak compared to previous bull cycles.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct your own thorough research before making any investment decisions.
