Analysis: The crypto market correction may be influenced by traditional financial factors, not an industry crisis.

BTC-4,87%

Odaily Planet Daily reports that market analysis indicates the recent decline in the cryptocurrency market is a “traditional financial event” rather than an “industry crisis.” As the Japanese yen interest rates rise, borrowing costs increase, and heightened volatility leads to higher margin requirements, such as metal trading margins rising from 11% to 16%, forcing some traders to liquidate positions, creating downward pressure on risk assets across markets, not limited to cryptocurrencies. Although Bitcoin ETFs have seen active trading during the market downturn, industry insiders believe this does not signify a full withdrawal by institutions. Emma Lovett, Head of DLT Lending at JPMorgan, stated that the more accommodative policy environment in the U.S. is driving experiments from private blockchains toward public chains and stablecoin settlements, and it is expected that by 2026, the integration of traditional finance and crypto infrastructure will deepen further. (CoinDesk)

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