According to external sources, the encryption market has shifted from panic to stability over the past week. Coinpedia, citing the analysis of Pi42 co-founder and CEO Avinash Shekhar, states that Bitcoin has recovered from holding the key support, indicating that there is still a long-term buy-in in the fall phase and that market attention has shifted further towards macro-liquidity and institutional capital change.
Bitcoin is holding the $58,000 area.
Shekhar states that bitcoin held the $58,000 area and then returned to the $62,000 top, which is not an occasional short-line fluctuations, and reflects the fact that the market still has deep long-term demand when it turns back. As the depression subsided and prices recovered faster, it also indicated that the funds were not completely withdrawn.
In his view, bitcoin still showed relative strength among the main encrypted assets. ETA maintains its position as an institutionally well-funded smart-contract platform, although its price performance is weak.
XRP and dog coins follow up.
According to the article, XRP was one of the assets that performed better last week, and market sentiment was underpinned by the adoption of expectations by institutions and the involvement of ETF. Dog coins also follow up with the overall market, showing that when risk tends to be repaired, funds not only flow back to bitcoin, but also spread to more liquid, mainstream mountain assets.
Such trends are often seen as signs of improved market sentiment. In other words, the rebound is no longer limited to a single asset but is beginning to spread to a wider range of encrypted assets.
The Fed expects to continue to dominate the market.
Shekhar argues that the current price of digital assets is increasingly driven by macro-factors and not just by events within the encryption industry. Over the past week, the market has focused on whether the Fed will keep interest rates high over a longer period of time, while observing employment data and inflation data to be published to judge the pace of subsequent monetary policy.
He said that digital assets were now more in line with expected fluctuations in global liquidity, which also reflected the growing connection between encrypted markets and traditional financial markets. Next, inflation data, Fed officials’ statements, ETF financial flows and the overall liquidity environment will remain the main variables for the market to judge the sustainability of the rebound.
The expansion of monetization and stabilization is continuing.
In addition to short-term prices, Shekhar mentioned another longer-term main line, namely, monetization, the expansion of stable currencies and the ongoing development of financial infrastructure along the chain. In his view, although short-term prices were still subject to macro-environmental impacts, the funds were still organized around the long-term use of the block chain.
According to the article, if macro-uncertainties continue to ease and institutional participation increases, the digital asset market is expected to continue the recovery. The monetization and the use of block chains in real-life scenarios will still affect the next stage of market performance.