Greed

Bitcoin ETF

Bitcoin

Bonk

<p>The crypto markets have pulled back sharply in recent days, leaving investors wondering—why is crypto down today? According to analysts CryptoCon and McKenna, excessive greed and euphoria surrounding the imminent Bitcoin ETF approvals appear to be key factors behind the latest selloff.</p> 
<h2 class="wp-block-heading" id="greed-and-euphoria-were-overheated">Greed and Euphoria Were Overheated</h2> 
<p><a href="https://twitter.com/CryptoCon_/status/1740418959885672540?t=5sdO_slR9DJciPGB62sEkA&amp;s=19" target="_blank" rel="nofollow">In a recent tweet, analyst CryptoCon</a> argued that greed could not be higher and data could not look more overheated heading into the expected ETF approvals. As he states:</p> 
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<blockquote class="wp-block-quote"> 
 <p>“Greed surrounding #Bitcoin ETFs couldn’t be higher, and data couldn’t look more overheated.”</p> 
</blockquote> 
<p>CryptoCon believes Bitcoin likely topped out locally around $45k based on momentum indicators that are flashing warning signs. He thinks this euphoria needs to cool off and expects Bitcoin to retrace back towards the $30k zone before resuming its uptrend.</p> 
<h2 class="wp-block-heading" id="unwinding-of-excessive-speculation">Unwinding of Excessive Speculation</h2> 
<p><a href="https://twitter.com/Crypto_McKenna/status/1740360097212109052?s=20" target="_blank" rel="nofollow">Analyst McKenna echoes</a> similar sentiments about greed reaching extremes. He points to the massive build-up in open interest in CME’s Bitcoin futures, up over $3 billion since BlackRock filed for a spot Bitcoin ETF.</p> 
<p>As McKenna notes, much of this activity looks to be excessive speculation that will need to unwind:</p> 
<blockquote class="wp-block-quote"> 
 <p>“These positions need to unwind &amp; think many who were buying post FTX insolvency will begin to de-risk some of their position.”</p> 
</blockquote> 
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 <img loading="lazy" decoding="async" width="1024" height="536" src="https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-1024x536.png" alt="" class="wp-image-409350" srcset="https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-1024x536.png 1024w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-300x157.png 300w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-766x401.png 766w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-1536x804.png 1536w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-2048x1072.png 2048w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-287x150.png 287w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-100x52.png 100w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-669x350.png 669w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799-788x412.png 788w, https://captainaltcoin.com/wp-content/uploads/2023/12/image-799.png 900w" sizes="(max-width: 1024px) 100vw, 1024px">
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<p>He predicts this unwinding could lead to a 20-30% market-wide selloff in the short-term.</p> 
<h2 class="wp-block-heading" id="don-t-panic-corrections-are-healthy">Don’t Panic, Corrections are Healthy</h2> 
<p>However, both analysts view these types of corrections as perfectly normal and even healthy after periods of rapid price appreciation. CryptoCon notes that the cycle is pausing to set up the next leg higher following this mid-cycle retracement. Similarly, McKenna remains net positive on crypto’s long-term outlook, forecasting an Ethereum breakout next year once the dust settles.</p> 
<p>So while painful in the short-run, this cooling-off of unsustainable greed and euphoria could lay the foundation for the next major crypto bull run. Savvy investors may look to take advantage of the discounted prices to accumulate more coins ahead of the next rally.</p> 
<p>In crypto markets, patience and discipline are often rewarded for those who can stomach the ups and downs. Maintaining perspective through these turbulent times is key.</p> 
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<p>The post <a href="https://captainaltcoin.com/why-is-the-crypto-market-down-today-11/">Why Is The Crypto Market Down Today?</a> appeared first on <a href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Why Is The Crypto Market Down Today?

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