CoinShares Chief Strategy Officer Meltem Demirors believes that we should not expect strong changes in the bitcoin market until the end of September, as investors will be resting.
During an interview on Squawk, Meltem Demirors stated that there is a “general summer lull” in the cryptocurrency market as many are not actively trading while on vacation.
“Investors were actively trading in the bitcoin market, we saw a lot of buying during its fall. Many companies and funds were looking to accumulate BTC. Its inflows and outflows were pretty flat throughout August. Now people are taking a vacation. Even though bitcoin trades 24/7, 365 days a year, it has more liquidity on weekends, and problems from Friday night to Monday morning when markets are not as active,” Demirors noted.
A leading CoinShares analyst thinks we shouldn’t expect much growth in bitcoin until the end of September. According to her, there are no powerful catalysts for growth right now. At the moment, bitcoin is tied to macroeconomics, as seen in its high correlation with shares of technology companies.
Demirors also touched on the topic of the Etherium merger. She believes that while a merger would definitely improve the project, it would not necessarily bring a significant infusion of investment capital, which would cause the price of ETH to rise.
“The Ephirium update will fundamentally change the dynamics of supply and demand. While there has been a lot of enthusiasm for the merger, one of the fundamental problems is that people who see it as a catalyst for ETH growth see the fork as an isolated event. But when you’re trading, building or managing a portfolio, you’re not just looking at one asset. You have to look at it in the context of a broader set of assets, rates and risk levels in your portfolio,” Demirors emphasized.
In April, Demirors, having studied the state of the cryptocurrency market, warned that until bitcoin’s recession arrives, investors will face many unpleasant surprises.