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- Jason Goepfert said many crypto traders are expecting a full-on crypto crash.
- According to him, in the previous week, many traders spent around $18 Billion and bought put option protections.
Jason Goepfert, Chief Research Officer at Sundial Capital Research shared a Tweet on September 24, 2022. In which he mentioned “Full-on Crash Mode.” As he said retail traders spent $18 Million buying put option protection last week, whereas they hold $46 Billion worth of index futures net short. Moreover, leveraged traders are betting on extreme bad things happening in the near future.
The crypto traders have spent a record high on the purchase of put options, which indicates a negative sentiment for the value of the fundamental asset. On the other hand, Michael van de Poppe, a crypto analyst, and Eight Global’s CEO thinks that a short squeeze is coming, when a shorted stock surges and pushes the short sellers to sell their position at a loss. Poppe also said that a crypto rally is imminent.
The Federal Reserve and Crypto Market
The Federal Reserve is the key monetary body of the U.S. and is responsible for the money supply and the formation of monetary policies in the U.S. In the current situation the Federal Reserve is making its efforts to overcome inflation and recession.
It hiked the interest rates with a hawkish stance, hence the crypto market is facing massive price drops in its digital assets and continuously performing in its bearish phase.
The Federal Reserve made the decision on the next interest rate hike with the Federal Open Market Committee and agreed to a 75 bps interest rate hike. After the announcement, most traded cryptocurrencies like Bitcoin and Ethereum fell down along with the rest of the crypto market.
In addition, the FED also predicts future interest rate hikes as an appropriate course of action. Also, the Consumer Price Index of August 2022 indicated that inflation is still worse than expected.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
