Fragile Cryptocurrency Market: Top Coins Experience Price Movements Up To 30%
- Low trading activity, delisting, and fragile market conditions. Retail activity is low, but potential for price movements.
- The cryptocurrency market faces challenges but opportunities for those willing to take risks. Grachev believes market activity will increase soon.
- Market participants working behind the scenes to fix the cryptocurrency market. Efforts will bring something to the market and potentially increase prices.
Spot volumes 23B/24h – minimum since winter 2019. Behind the scene, the exchange started asking projects to manage trading volumes, liquidity, etc, otherwise – delisting. The price moves by 20-30% within 24h, even for top coins.
In a recent tweet, Andrei Grachev, Managing Partner of DWS Labs, provided an overview of the current state of the cryptocurrency market. According to Grachev, trading activity has reached its bottom, with even solid coins being almost non-existent on exchanges. Spot volumes have hit their minimum since winter 2019, and behind the scenes, exchanges are asking projects to manage trading volumes and liquidity, or face delisting.
Retail activity is also very low, but people still want to speculate and make money, leading to significant price movements of up to 20-30% within 24 hours, even for large coins. However, Grachev notes that the market is still fragile. Initial coin offerings (ICOs), initial exchange offerings (IEOs), and direct listings are dead, and the market is waiting for something new, such as the Binance launchpad, to boost retail activity.
Despite the current market conditions, projects, exchanges, market makers, and other market participants are working behind the scenes to fix the market. While there is no 100% solution, Grachev believes that these efforts will bring something to the market.
In a nutshell, Grachev notes that the market is currently at the bottom in terms of activity, but prices are uncertain. However, he believes that market activity should increase within a few months, potentially leading to an increase in prices. While there are regulatory risks, financial turbulence, lack of liquidity, and the possibility of a market crash, Grachev sees this as an opportunity to make money and close deals with a long position and nice conditions.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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