Investment funds fixing losses from crypto investments
By Recently, investment funds have been fixing losses from crypto investments. Let’s look at the causes of this phenomenon.
The main factors contributing to these losses are the depreciation of altcoins, American trade tariffs and heightened macroeconomic instability. Businesses are compelled to trim their portfolios, retaining only six to ten ventures at most. The strategy of purchasing tokens before they are listed and then selling them for a profit on the first day is becoming obsolete due to stricter regulations in the crypto sphere. In an unstable market, investment funds are fixing losses to prevent possible large losses.
According to sources close to the matter, investment funds are increasingly turning their focus towards decentralized finance (DeFi) protocols. This shift indicates a growing demand for high-quality tokens and a convergence of the cryptocurrency market with traditional financial systems.
Earlier, CP Capital analysts warned that market participants fear new developments in the Sino-American trade dispute could trigger another downturn in major cryptocurrencies.
