Ethereum is set for another plunge, this fund manager believes
The latest crash of Ethereum spread panic among investors throughout the market especially, when the second-largest cryptocurrency on the market fell below the $1,000 mark. However, other investors feel ETH has not yet bottomed and the market should be prepared for another decline.
Daniel Cheung, Co-founder of Pangea Fund thinks that the worst months for cryptocurrencies could be July or August. Since the digital asset sector follows macro movements like inflation, as the fund manager says, the market is currently in “Macro trading” mode.
Given the Fed’s increased hawkishness and the abnormally high inflation data, Ethereum‘s recent trading at a correlation of 0.8 to Nasdaq indicates that the cryptocurrency practically “blindly” reflects patterns in traditional markets. These patterns are unlikely to reverse in the coming months.
Daniel Cheung, Co-founder of Pangea Fund thinks that the worst months for cryptocurrencies could be July or August. Since the digital asset sector follows macro movements like inflation, as the fund manager says, the market is currently in “Macro trading” mode.
Given the Fed’s increased hawkishness and the abnormally high inflation data, Ethereum‘s recent trading at a correlation of 0.8 to Nasdaq indicates that the cryptocurrency practically “blindly” reflects patterns in traditional markets. These patterns are unlikely to reverse in the coming months.