Analysis: Recent Crypto Market Pullback May Be Influenced by Traditional Financial Factors, Not an Industry Crisis

Odaily News According to market analysis, the recent decline in the cryptocurrency market is a "traditional financial event," not an "industry crisis." As Japanese yen interest rates rise, borrowing costs increase, while heightened volatility leads to rising margin requirements. For example, margin requirements for metal trading have risen from 11% to 16%, forcing some traders to liquidate positions, creating cross-market downward pressure on risk assets, not limited to crypto assets. Although Bitcoin ETFs saw active trading during the market decline, industry insiders believe this does not indicate a full-scale institutional withdrawal. Emma Lovett, Head of DLT Credit Markets at JPMorgan, stated that the more lenient policy environment in the U.S. is driving experimentation from private chains to public chains and stablecoin settlement, with the integration of traditional finance and crypto infrastructure expected to deepen further by 2026. (CoinDesk)