Market crash 'does not have long-term fundamental implications' — Analyst
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The crash was caused by a perfect storm of short-term factors, causing $20 billion in liquidations — the worst 24-hour drain in crypto history.
The sudden market crash on Friday, which caused some cryptocurrencies to decline by as much as 95% in under 24 hours, does not signal a long-term bearish outlook or deteriorating fundamentals, according to investment analysts at The Kobeissi Letter.
Friday’s market meltdown was triggered by a perfect storm of short-term factors, including “excessive leverage and risk,” and US President Donald Trump’s announcement of 100% tariffs on China, the analysts wrote.
The Kobeissi letter cited the market’s heavy long bias, with $16.7 billion in long positions liquidated compared to just $2.5 billion in short positions, a ratio of nearly 7:1.
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