Here’s All the Reasons Why Crypto Prices are Exploding Right Now

cryptonews.com:

The crypto market has just added $50 billion in a lightening-fast recovery from what some market watchers were fearing might be the start of the next leg down in a revisiting of the year's lows.

But what is behind this major pump in prices across the crypto complex?

A number of factors can be seen to have come together. 

First there’s the deleveraging events that appear to have run their course and there may be no more dominoes to fall. After Terra, Voyager, Celsius and Three Arrows Capital, no more shoes have fallen, as yet.

Secondly sellers may have exhausted themselves, with major coins such as bitcoin in oversold positions.

We can add to that a third and related factor, which is whales are looking to take up new positions in the belief that we are at or close to the bottom for the crypto market.

1k bitcoin whales have been distributing to exchanges in the wake of the Luna collapse (more on Luna below) – the chart below from Glassnode shows how whale distribution aligns with local tops.

Fourthly, we need to take into account the situation with other asset classes and the macro environment, and this background music may be the trigger for today’s impressive upturn.

Although there was no statement from Fed chairman Jay Powell that he was going to slow down on raising interest rates, there were indications from elsewhere that the gloom was being overdone in equity markets. 

In China, for example, producer price inflation data came in better than expected and hopes of further stimulus were heightened. 

In Europe gas prices fell on hopes of a palliative emerging from European policymakers today.

That led to a fall in bond prices, although oil was up and so too was gold. But generally good vibes in the stock market have fed through