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This is what triggered the latest correction in the crypto market, according to CoinShares CSO Meltem Demirors

Meltem Demirors, the chief strategy officer (CSO) of cryptocurrency investment firm CoinShares, says digital assets performed “exceptionally well” in 2021, even after pulling back from record highs.
Demirors says in a Yahoo Finance interview that one of the factors contributing to the correction of the crypto market, the expectation is that the bull run after the four-year halving of Bitcoin (BTC) because of history is over.

“What we’re mostly seeing at the end of this year is that I think we have three factors.

Number one, crypto works in cycles and certain narratives and one of the narratives is that we have these four year cycles around the halving of bitcoin and we are reaching the end of a cycle.

I think there is a little self-fulfilling prophecy here where people are looking for the same pattern to repeat. “

. @ CoinSharesCos @Melt_Dem on three crypto factors: “We have these 4 year cycles of halving bitcoins and we are reaching the end of a cycle … number two and number three are that bitcoin is highly funded … so we are seeing correlation with macro markets . ” pic.twitter.com/rKovJnwRXc

– Yahoo Finance (@YahooFinance) December 20, 2021

The CoinShares CSO says the growing correlation between Cryptocurrencies and the legacy markets lead to jitter which is evident in the latter and affects the former.

“But I think number two and number three are: Bitcoin is heavily financialized, the entire crypto class is more financialized.

So we see a correlation with the macro markets and I think the uncertainty we see with stocks is also reflected in crypto. “

Demirors also says the correction in the crypto market could be driven by investors posting profits.

“I think the third piece has to do with winning again.

Many funds and investors who have seen significant increases in their portfolios this year will likely seek to crystallize and secure some of those gains, you know these performance fees are paid.

And I think we are seeing some sales by the end of the year as people look ahead and rebalance their book and rebalance their engagement for the New Year. ”
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Source: Crypto News Deutsch

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