Editor's PiCK
"It may be difficult for altcoins to sustain a rebound... Market enthusiasm still lacking"
Summary
- Matrixport evaluated that the recent rebound in the altcoin market has been short-term and concentrated on a few tokens.
- They diagnosed that as the market currently lacks clear fundamentals, it is difficult to create sustained upward momentum.
- The report stated that buying pressure is not strong in the derivatives market, so investors are staying on the sidelines.
Recently, questions have been raised about the sustainability of the rebound in the altcoin (virtual assets excluding Bitcoin) market.
According to BlockBeats, a media outlet specializing in virtual assets (cryptocurrencies), Matrixport, a virtual asset analysis firm, stated in a report on the 5th that "Expectations for an 'altcoin season' have been spreading lately; however, so far, only two short-term rebounds have been observed in a limited way, and the movements have been concentrated on a handful of tokens."
The report continued, "Although there was some temporary vitality in Q4 last year, it did not expand to the broader market," adding, "The current upward trend lacks clear fundamentals, and it is difficult to create sustained momentum."
In particular, some believe that in the derivatives market, buying pressure is not materializing strongly. The report noted, "Despite a slight recovery in prices, many investors remain on the sidelines," and added, "Based on indicators such as the decline in futures funding rates, market enthusiasm is still limited."
Meanwhile, the funding rate is an indicator in futures exchanges that shows to what degree the ratio of long or short positions is tilted, representing the sentiment of futures investors.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
