Matthew Dibb, COO and co-founder of Stack Funds in Singapore, said: “The bullish catalysts for cryptocurrencies are very limited right now, and we may see Ethereum test yearly lows in the coming months.
And the appreciation of the U.S. dollar index is what we really need to pay attention to to understand the sentiment of risk assets, and it is not looking good.
Crypto-native hedge funds quickly reduced their positions in Bitcoin and Ethereum after the inflation report, said Brian Cubellis, an institutional research analyst at Coinbase. Laurent Kssis, a crypto trading advisor at London-based CEC Capital, said that new shorts are being launched through centralized exchanges, mostly derivatives.
This comes ahead of the Fed’s decision to raise rates by 75 basis points later this week, but a 100 basis point move is still under discussion.