The crypto market experienced another sell-off weekend that extended to Monday, with prices of major assets plummeting significantly. Despite the over 16% liquidity that flowed out, Daniel Yan, CEO of Matrixport, said in a recent X post that the market will soon recover from the downturn.
Matrixport CEO Remains Bullish
While assessing the crypto market’s current state, the crypto platform executive attributed the recent correction to Monday trading’s typical weakness. He claims the current market conditions are driven by low liquidity and the actions of Commodity Trading Advisors (CTAs), also known as trend-following traders.
He highlighted the challenges faced by the Asian market, which he believes is overly sensitive to negative news. He also noted that the market lacks independent thinking, escalating the downward trend. Despite these challenges, Yan remains optimistic about the market’s prospects for recovery.
Notably, Yan’s assessment of the market’s downtrend and potential for recovery will likely reassure investors battered by the recent sell-off.
Why Crypto Market Outflow?
The recent sell-off in the crypto market was triggered by a series of events, primarily the White House’s decision to impose tariffs on Canadian, Mexican, and Chinese goods. Canada retaliated by imposing a 25% tariff on $106 billion of U.S. goods, and Mexico may follow suit.
The tension between these nations fueled fears of a global trade war, causing investors to become cautious and seek safer assets. Seen as a “risk proxy” by many, the crypto market reflects broader market sentiment. Investors who become risk-averse sell their crypto assets, leading to price drops.
However, Yan believes the recent tariffs imposed by the Trump-led United States government will have a limited impact on the crypto market, contributing to a quick recovery. He explained that tariffs will not lead to significant productivity or inflation shocks in the US, which will help stabilize the market.
Meanwhile, Yan is not alone; other famous investors share similar sentiments. Despite market volatility, Robert Kiyosaki, the author of Rich Dad Poor Dad, remains bullish on Bitcoin. In a recent tweet, he said he would buy more if Bitcoin crashed due to Trump’s tariffs. “Crashes mean assets are on sale. Time to get richer.”
