Investing.com — ‘s fluctuations following the approval of new exchange-traded funds (ETFs) in the United States and the anticipation of the halving have led to increased speculation in the cryptocurrency market. This has boosted other markets, in addition to the main cryptocurrency, but in a more general way.
These factors “have been the tide that lifts all boats, and there is no question about that,” says Julius Baer, who questions whether the increase in trading would be supported by a solid foundation, mentioning that “unfortunately, a good chunk of the trading volume is generated from memecoins, whose upside has been merely parasitic.”
Manuel Villegas, Julius Baer’s digital asset analyst, points out that Bitcoin’s gains are spreading to ” larger alternatives, and cascade down into the riskier and less-sound plays.”
The expert laments that “as long as US dollar liquidity continues to increase, investors will continue looking at the rest of the blockchain ecosystem, with little discrimination on what has value and what does not.”
(This story was translated from Portuguese)