Jeff Dorman, Chief Investment Officer at Arca, analyzed the actors he sees as drivers of the current market crash, suggesting there are more reasons to buy than sell.
What Happened: Dorman lists six factors:
- Macroeconomic signals
- Crypto market maker Jump selling
- ETF flows
- Kamala Harris‘s rising poll numbers
- Middle East tensions
- Supply issues.
He notes that while the macroeconomic signals indicate a short-term sell signal, he believes the long-term outlook is more optimistic. He suggested that Chicago Board Options Exchange’s CBOE Volatility Index (VIX) is conditioned to retreat, the Federal Reserve will cut rates in September and it's still an election year, making it a good time to "buy this dip."
Dorman’s analysis provides valuable insights into the current crypto market dynamics. He points out that Kamala Harris's rising popularity in the polls against Trump is bad for crypto, suggesting traders "sell until this reverts.”
Dorman downplayed the impact of Middle East tensions on the long-term crypto market and noted that ETF flows are not a cause for concern, although the front-running of supply still looms.
In conclusion, Dorman argued that there are more reasons to buy than sell in the current market scenario. He noted that Toncoin TON/USD and Ondo Finance ONDO/USD are the only coins he pays attention to that are still positive since the March 13 highs.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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