The crypto market saw a rally lately, and now we’ll address the main catalysts that are pushing this rally. Check out the latest reports below.
The main catalysts driving this crypto rally
At the moment of writing this article, the most important digital assets are trading in the green.
It’s been revealed the fact that a closely tracked crypto trader says there are two key factors powering the current rally in the cryptocurrency markets.
Earlier this month, pseudonymous analyst Light said that after an abysmal first half of the year, crypto bulls were in a position to inspire a rally in the markets but lacked the narrative to do so.
“The market now lacks a viable schelling point narrative. Yet its desire for one is palpable. It wants to make back what it lost. We will suspend disbelief in an effort to do so once a vehicle emerges to carry this latent desire. In the wreckage are nascent roots.”
Now, Light says the announcement of Ethereum’s (ETH) schedule for The Merge along with a relatively quiet macro backdrop are giving crypto bulls the energy to ignite rallies across the markets.
“If the last few days of price action didn’t make it obvious, The Merge has filled the narrative void. Macro calming opened space for a return to asset specific drivers.”
These are the two factors that have been driving the latest crypto rally that people saw in the market.
In other important news from the crypto space, the publicly traded cryptocurrency exchange Coinbase (COIN) had no financing exposure to crypto lender Celsius Network, hedge fund Three Arrows Capital or crypto broker Voyager Digital, according to a Coinbase blog post on Medium on Wednesday. All three troubled firms are seeking bankruptcy protection.
“We have not engaged in these types of risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client.”
