Editor's PiCK
[Analysis] "Cryptocurrency Santa Rally Possible with Major Economies' Easing Policies"
Summary
- It was reported that the cryptocurrency market rally is expected due to the easing policies of major central banks.
- Zag Kooner stated that the rate cut by the Federal Reserve would encourage capital inflow into the risk asset market.
- It was reported that an upward phase is likely to begin after the liquidation of large long positions in the derivatives market.
An analysis suggests that the cryptocurrency market rally is expected due to the easing policies of major central banks.
According to The Block on the 12th (local time), Zag Kooner, head of derivatives at Bitfinex, stated, "The European Central Bank (ECB) and the People's Bank of China (PBOC) have already cut rates," adding, "If the Federal Reserve (Fed) also cuts rates in this situation, it will encourage capital inflow into the risk asset market."
He continued, "The easing policies of major central banks are increasingly bringing optimism to the risk asset market," and added, "With the unique positive atmosphere at the end of the year, there is a possibility of a 'Santa Rally'." Furthermore, he mentioned, "On Monday, a large position of $1.7 billion was liquidated in the derivatives market," and "As excessive long positions have been cleared, an upward phase is likely to begin in the coming weeks."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
