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Analyst: Regulatory and Institutional Factors Drive Crypto Market Rebound, But Market Sentiment Remains Cautious
Summary: Contrary to rumors, CoinDesk analyst Shaurya Malwa stated that despite a rebound in the crypto market, market sentiment remains cautious. Earlier this week, Bitcoin's previous sell-off, accompanied by reduced weekend liquidity and spillover of macro market tension, amplified price volatility. The broader market is still digesting concerns related to corporate balance sheets, including sharp withdrawals ...
Contrary to rumors, CoinDesk analyst Shaurya Malwa stated that despite a rebound in the crypto market, market sentiment remains cautious. Earlier this week, Bitcoin's previous sell-off, accompanied by reduced weekend liquidity and spillover of macro market tension, amplified price volatility. The broader market is still digesting concerns related to corporate balance sheets, including sharp withdrawals related to Strategy ETFs and pending MSCI methodology reviews, which have suppressed risk appetite in recent trading.
Tuesday's rise was driven by several incremental catalysts. US SEC Chairman Paul Atkins stated that the SEC plans to announce a proposed digital asset company innovation exemption framework, seen by the market as a step towards regulatory clarity after months of policy stagnation. In addition, Vanguard announced this week that it will allow trading of crypto assets ETFs and mutual funds on its platform, boosting market sentiment after long-term outflows.
However, from the structure of the rebound, it is mainly a reaction to relieve pressure rather than a trend change. Market depth remains uneven, with various mainstream tokens recovering from multi-week lows. The next test is whether spot demand can support this round of rebound once the derivatives market recovers from the liquidation cycle.
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Link: Analyst: Regulatory and Institutional Factors Drive Crypto Market Rebound, But Market Sentiment Remains Cautious [Copy]
