What is Going On With the Crypto Markets, Experts Share Opinions

From the most recent slump that began on June 10, to a reprieve at the announcement that the SEC won't consider Ethereum a security, the markets continue to go down, as well as up.

A few experts in the field of cryptocurrency, investing, and markets spoke to Cointelegraph to give their insight into the current market situation, and why it is dropping.

"For instance, in a bull market, sectors such as financial, tech and energy are the most favorite sectors. When the market starts to fall off the cliff, portfolio managers and hedge funds start to favour sectors such as consumer staples. They seek stocks with better dividend yield because, even though the general trend in the market could be to the downside, they still get a better yield relative to the overall market."

"The fact is that these technologies are poised to transform the way we do business. They should not need market manipulation to sustain their value. I'm looking forward to a decoupled world where markets are able to evaluate each coin on its own merits."

Three reasons from Tom Lee, plus futures effectsTom Lee, the co-founder and head of research at Fundstrat Global Advisors, who is renowned for his bullish predictions on the Bitcoin price, has given Cointelegraph three reasons why the Bitcoin market is diving, and also mentioned his feeling on futures markets.

"Futures markets, in normal liquid markets where there is broad participation, don't have an effect on the underlie, the futures itself is adding liquidity, or attracting liquidity, because institutions can use it," Lee explained.

"In crypto right now, the market has a supply/demand problem, because mining rewards, coupled with tax selling, and other factors have caused more supply versus demand for crypto. The futures markets have been subject to some potential manipulation. I don't think it will be the case in a few years from now, but even though the futures markets at the moment are only a hundred-million or so contracts, it is enough to affect Bitcoin price."

"Bitcoin, like other assets and technologies, goes through cycles that affect its use, which is often correlated with the asset price. What we see here, is that the cycle was accelerated by situations which can be solved by fully decentralized operations. Eventually, when the blockchain ecosystem becomes fully decentralized and not controlled by big stakeholders and"whales," it will be bringing back trust into the markets and we can see the markets climbing again, on the other hand, these market movers and shakers, supported by true Bitcoin believers, will not let Bitcoin reach zero.

The markets may well be down compared to the highs of $20,000, but $6,000 or $7,000 per BTC is still pretty good.

No need to panicThe sentiment around the markets may be negative and one for concern when it comes to everyday investors, but overall, the experts spoken to do not seem to be raising any cause for alarm.