Analyst: Recent decline in the encryption market is not caused by fundamental factors, but rather investors taking profits at the end of the year.

Odaily Planet Daily News Parataxis’ Edward Chin said, “The recent market downturn appears to be investors liquidating their profits at the end of the year, and there are no fundamental factors that triggered this dumping.” Some investors may be choosing to reduce their exposure and take profits due to reduced expectations of a Fed rate cut in 2025. Pepperstone Group’s Research Director Chris Weston wrote in a report, “Technically, caution is advised in the short term. This does not mean that we will soon see a big dump in prices, but the momentum of the uptrend has clearly weakened, and buyers have lost their dominant position and control over market data.” (Bloomberg)