It has been closely observed and noted that Crypto somehow managed to exceed all expectations even though, for the whole of the past week, global markets have been facing tremendous amounts of fluctuations and instability. The reason being shared for this situation is because of the sudden surge in the dollar. Somehow, all the other prime cryptocurrencies have succeeded in holding on to their position.
On the other hand, this situation of the surge in the dollar has drastically affected other global stock markets and where major currencies are concerned. Even in the case of digital assets, it has been perceived that there has been a drastic situation of disengagement where the conventional markets are concerned.
The reasons attributed to this present scenario are many. The CEO of Galaxy Digital, Mike Novogratz, said during a conference in Singapore that he thought most forced sellers had already left the market during the summer, contributing to crypto’s relative performance. We’re in this strange situation where there are just a few buyers and sellers, and the market doesn’t have the same vigor as the equities or bond markets, where you need to sell, stated Novogratz.
After the abrupt sell-off that occurred in the aftermath of Three Arrows’ failure and the ensuing CeFi contagion, Jeff Dorman, CIO at Arca, has been saying for a while that crypto has decoupled from macro.
All said and done, experts and crypto traders who are not letting their guard down are still optimistic that soon there will be an upward trend, with the global markets stabilizing somewhat and the situation turning normal and better.