Optimism in the crypto market is fading, with institutional deleveraging and uncertainty exacerbating volatility.
According to the Zhitong Finance app, Federal Reserve Governor Waller stated on Monday that the market optimism, which was boosted after Trump’s election, is fading as recent sell-offs hit crypto assets. Waller noted that the recent volatility is related to regulatory uncertainty and risk management adjustments by large financial institutions.
Waller pointed out that fluctuations in the crypto market are normal, but this time the volatility further highlights the deep ‘entanglement’ of this sector with the traditional financial system. As institutional funds such as hedge funds, trading desks, and exchange-traded funds (ETFs) continue to get involved, crypto assets are no longer just a fringe market dominated by retail investors, and…
