Current market gains could be partly due to people returning from holiday breaks and reentering the market, leading to increased demand and trading activity
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This Monday we reached out to Jaroslaw Stankiewicz, COO at Geco.one, to ask him about recent events on cryptocurrency market as there are some rumours about Huobi exchange and significant increases in prices of many assets.
There are some rumours related to Huobi; is the exchange another factor which could affect the crypto market?
Huobi, a digital currency exchange based in Seychelles, announced plans to cut its global workforce by approximately 20%. This decision comes as the cryptocurrency industry faces tough times due to a bear market. Huobi is one of the largest crypto exchanges globally, with a daily trading volume of around $370 million, according to CoinGecko. Justin Sun, a Huobi's advisory board member, stated that the layoffs have not yet been implemented. The company cited the challenging market conditions as a reason for the workforce reduction. The staff reduction suggests that the company is preparing for a lull in the bear market. It also suggests that a collapse is unlikely.
In the wake of FTX's collapse, cryptocurrency traders are searching for indications of which company will be the next to struggle in the downturn of digital assets. Many investors have abandoned centralized exchanges, with approximately 300,000 bitcoins being transferred out from November 6 to December 7, as reported by CryptoQuant's latest available data.
Bullish sentiment spreads among cryptocurrency market - even altcoins gain significantly - what's the most probable driver of these increases?
There are several reasons why the current bullish sentiment in the cryptocurrency market may be temporary and potentially related to people returning from holiday breaks. First, it is common for markets to see increased activity and trading volume after periods of reduced activity, such as holidays. When people return from holidays, they may be more likely to check on their investments and potentially reenter the market. This increased demand and trading activity can increase prices and contribute to market gains. Therefore, the current market gains could be partly due to people returning from holiday breaks and reentering the market, leading to increased demand and trading activity. However, it is essential to note that the cryptocurrency market can be highly volatile, and it is difficult to predict market movements accurately.
Jaroslaw Stankiewicz, COO at Geco.one
