Ether Prices in Downtrend as Bitcoin Challenges $64K

In an interview with CoinDesk on Telegram, Jun-young Heo of Singapore-based Presto explained that unexpectedly increased U.S. treasury yields, a stronger dollar, and geopolitical risks in the Middle East caused crypto markets to experience downturns. (Or: The unanticipated rise in U.S. treasury yields, a more powerful dollar, and Middle Eastern geopolitical tensions negatively impacted crypto markets, according to Jun-young Heo during his interview with CoinDesk on Telegram.)

In simpler terms, Yeo explained that the fearful investment attitude, or risk-off sentiment, was evident in the derivatives market as well. Some exchanges saw their funding rates go below zero, while the three-month yields on certain investments dropped significantly to reach a level of 10%.

In the past 12 hours, liquidations occurred roughly equally between those holding bullish and bearish bets in the futures market. A total of $31.1 million was forfeited by traders with long positions, while $36.49 million was wiped out for those with short positions. (Note: “getting rekt” is a colloquial term for getting severely beaten or defeated.)

Investors have tried but failed to surpass previous record highs in the markets, yet they’re not fully embracing a pessimistic outlook either, according to Justin d’Anethan, head of business development at Keyrock, a Hong Kong-based crypto market maker. He shared this observation with CoinDesk in a recent note.

The CoinDesk 20 index, which tracks the world’s largest digital assets, isn’t showing much change and is currently at a level of 2,174.

In simpler terms, he explained that the crypto market presents challenges due to numerous encouraging developments for cryptocurrencies. Yet, on a larger scale, factors like rising interest rates and unexpected inflation, as well as escalating tensions in the Middle East, have a significant impact on all investments.

D’Anethan pointed out that lateral price fluctuations and establishing a trading range in cryptocurrencies might lead to bigger price swings. Leveraged investors could make predictions based on these trends, only to experience sudden and painful margin calls when the market finally makes a clear direction, resulting in significant market shifts.

Heo suggested that it may take some time or an unexpected factor for this sentiment to shift from bearish to bullish again.