A prominent cryptocurrency analyst says last week’s altcoin crash will continue to wreak havoc on the industry for months, predicting investors will sell out. Here are the details…
Specialist awaits liquidation in these altcoin projects
Kriptokoin.com As we have also reported, LUNA, the stablecoin TerraUSD (UST) that diverges from the US dollar It has lost almost all of its value. The UST later suffered heavy losses and the fall of both cryptocurrencies had a ripple effect on the altcoin market. Weiss Ratings crypto analyst Alex Benfield says altcoin liquidity and buyer-side demand seem to have “dried up.” “Many projects will suffer huge losses in the coming months as investors start to gain value again,” Benfield said. Interesting times await us,” he said.
Benfield believes that many investors and institutions have altcoins backed by the Ethereum Blockchain network instead of market leaders Bitcoin (BTC) and Ethereum (ETH). He stated that he preferred liquidation. Examples of these coins are Chainlink (LINK), Polygon (MATIC), Decentraland (MANA), Uniswap (UNI), ApeCoin (APE), Aave (AAVE), and The Sandbox (SAND).
Analyst noted the crash in LUNA: Unprecedented
Contrary to the bearish sentiment in altcoins, Bitcoin and Ethereum, after experiencing a near decline to the highs of the previous bull market, Stating that . Benfield said the collapses of the LUNA and the UST were one of those nearly unprecedented. Having hit an all-time high of $115 in April, LUNA is down one percent.
Benfield said, “Many large hedge funds and institutions had large positions in LUNA and UST, and this collapse has forced many to liquidate other altcoin holdings to secure cash. Obviously, this had volatile effects in the market and caused the prices of other altcoins to drop,” he said. “Investors who were already concerned about the macroeconomic factors affecting the crypto market also panicked when they witnessed the explosion of the Terra ecosystem,” Benfield said.
