Interview: OKEx Team Comes Together to Answer Some Questions About the Crypto Market – Kultejas News

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Share 0 As the cryptocurrency market is constantly riding waves, we at NewsBTC decided to throw some questions at OKX’s team to better understand how they view these developments and impact on their own operations. First, the OKEx team offered a clear picture by providing detailed, in-depth answers to our questions.Representatives participating in the interview…

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As the cryptocurrency market is constantly riding waves, we at NewsBTC decided to throw some questions at OKX’s team to better understand how they view these developments and impact on their own operations.
First, the OKEx team offered a clear picture by providing detailed, in-depth answers to our questions.Representatives participating in the interview include Robbie Liu, market analyst at OKX, Hunain Naseer, senior editor at OKX Insights, Richard Delani, senior analyst at OKX, and CEO Jay Hao himself.
Read the interview below.
News BTC: Bitcoin has been performing really well for the past few months, and yet experienced a sudden drop in just a few hours.what changed?
Robbie Liu, market analyst: While the major drop occurred within just a few hours, BTC had recently stalled in terms of price action, failing to conclusively dissolve and stay above $ 60,000 for about 10 weeks.This persistent resistance had already put pressure on the bulls, and recent news acted as a trigger for the bears to enter.The initial decline was the result of a slowdown in market sentiment, but it worsened as billions of value-leveraged long-term leases were liquidated in quick succession.
In addition to the high leverage, the mem-coin craze was also at its peak, drawing capital from bitcoin and major cryptocurrencies.It pushed the dominance of bitcoin to its lowest level of 40% during this boom, while also indicating that the market may soon reverse.
News BTC: In a recent OKX Insights report, it was indicated that the Coinbase market listing is listed as one of the reasons for the decline in BTC.Can you guess the feeling behind it?
Hunain Naseer, Senior Editor: The Coinbase listing was a major publicized event and served as a catalyst for BTC to post a new all-time high.However, as is common in the crypto space, and in other speculative markets, traders take positions before a major development and take profits immediately before and after the actual event.

A similar situation was seen in this case, where the purchase was seen before the listing and after this, there was pressure of selling.
News BTC: Tell us more about the current relationship between BTC, ETH and other traditional global assets.
Hunain Naseer, Senior Editor: In recent weeks, relations between BTC and ETH had weakened as the former halted and the latter went to new highs above $ 4,000.Similar was the case with altcoin, although to a lesser extent, where they followed ETH, but did not completely separate from BTC.In terms of correlation with traditional assets, BTC and tech stocks have been strongly correlated recently, with any major sales in the sector also impacting the price of BTC.
News BTC: If my understanding of the US Treasury Yield is correct, then logic suggests that low yields would encourage investors to look for alternative assets, such as bitcoin.However, in the last few months, yields have been getting better every day, with a healthy spread between short and long term.Nevertheless, BTC maintained a good price level, even recovering for some time before crashing.How do you read it?
Robbie Liu, market analyst: Since the epidemic began last year, the Fed has prioritized fiscal stimulus packages and asset purchases, bringing treasury yields to almost zero.However, minutes of the FOMC April meeting revealed a possible taping was indicated last Wednesday.
As a result, the three major US stock indices fell nearly 1% during Wednesday, which also coincided with the BTC crash.After falling below $ 30,000, BTC fell below UTC around 1:00 pm UTC at the same time as the S&P 500.

Meanwhile, the 10-year US Treasury Yield set a new daily high, rising nearly 4 basis points to 1.6762%.
Market reaction indicates that bitcoin is currently a risky asset, along with equities, and both will bear the revaluation that comes with an increase in rates.It takes time for the market to keep pace with the possible changes in interest rates.Historically, bitcoin has undergone both a rate hike and a rate cut cycle, and more importantly, bitcoin performs better when the market volatility index is hovering at lower levels.
News BTC: Due to the events of this week as the crypto market has gone crazy over the past few weeks, there is bound to be some confusion among the trading community.What impact did these events have on the operations of OKEx?
Jai Hao, CEO: Looking at the sideways movement in terms of prices during the middle of May, we saw community engagement falling, but increasing trading volume and participation in campaigns as market participants sought to take advantage of lower prices.
News BTC: Ethereum has been one of the great performers and its rise has been good for the altcoin ecosystem.Can you please shed some light on what the imminent implementation of ETH2.0 will mean for the market?
Richard Delaney, Senior Analyst: Among other changes, ETH 2.0 seeks to fundamentally improve Ethereum’s transaction capacity.If implemented successfully, the scalability benefits of data sharding should encourage further development of both the DIFI and NXT sectors, and enable new innovative sub-industries to become familiar with technological proliferation.
Similar to the BTC price action in the weeks before and after the Summer Hard Fork of 2017, it is likely that we will see ETH price fluctuations around major transition dates.Although the change is widely accepted throughout the community, any major upgrade introduces several unknowns, which would likely be reflected in the ETH value.
After the transition, there may also be a sudden increase in the number of ETHs at stake on the network.Today’s ETH bet is yet to be placed.

Therefore, today’s stake requires confidence in the successful rollout of ETH 2.0.Even though around 4.8 million ETH has already been placed at stake, it seems reasonable to assume that many users will wait until after the successful completion of the upgrade until there is a funding commitment to protect the revamped network.
Despite the recent price volatility, a number of complementary factors support higher ETH prices, at least in the medium term.In addition to removing ETH from the market through network scaling and stacking to accommodate more users, EIP-1559 is set to significantly reduce Ethereum Minor sales pressure by burning a larger percentage of transaction fees.
News BTC: What is the effect of rising transaction fees on the Ethereum network on ETH/Crypto or Fiat and ERC20/Crypto or Fiat trading pairs? How has this affected activities on the OKEx platform and what does this mean for the future of ETH?
Richard Delaney, Senior Analyst: The increase in transaction fees clearly discourages people from using the Ethereum network.Complex transactions involving the DEFI protocol or NXT minting can quickly become highly expensive on the base blockchain, implying that Ethereum is a rich person-only playground.
The recent increase in Ethereum-bridged blockchain and Layer-2 cheap transaction fees suggest that Ethereum has a huge appetite for a low-cost version of the offering.As its scaling technology improves with solutions such as Polygon and ETH 2.0, Ethereum’s improved fluidity and other network effects will attract many new users and re-attract some users from the so-called “Ethereum Killer”.
News BTC: What is your outlook for BTC and ETH in the coming months? Any warning signs traders should see?
Robbie Liu, market analyst: Looking at the bull market from 2016 to 2017, bitcoin has not seen a decline for three consecutive months.Given this, it would not be surprising if the market rallies in June instead of posting another red month.But a very high rebound above $ 60,000 is probably too idealistic.Bitcoin will still have to face a lot of sales pressure due to previous large volume purchases in the range of $ 40,000 to $ 60,000.
Looking at bitcoin’s dominance, it fell below 40% before Black Wednesday, a 3-year low since May 2018.

We expect the dominance ratio to not fall below 40% in the coming weeks, meaning investors will return to bitcoin.Worrying about another reset.Last week’s major retracement is still more likely to be a mid-cycle correction.

On-chain data shows that whales have started hoarding coins again.
As bitcoin is now increasingly correlated with macro events.

Macro risks, including the FED’s tapering calendar and China’s likely further regulations, could cause traders to put another sell-off.
News BTC: At the same time, ETH L2 tokens, especially MATIC, have registered impressive gains in the past months.Is this a trend that is here to stay?
Richard Delaney, Senior Analyst: MATIC’s growth – both in terms of price and users – demonstrated a clear user demand for low-cost Ethereum DAP following a rebrand of the project earlier this year.With developers’ onboarding being fundamentally simplified in L2s, it seems likely that it will remain relevant for some time to come.
Some questions address the relevance of polygon post-ETH 2.0 because both networks address scalability.However, it is still unclear whether or not the Sharks will be able to process the more complex computations required for smart contracts, polygons and other L2s are expected to complement the upgrades rather than compete with it.
News BTC: What is OKEx currently working on? Can we expect some big announcements soon?
Jai Hao, CEO: OKEx is working to support direct deposits and withdrawals on the Ethereum Scaling Solution Arbitrum.

We are currently doing due diligence to estimate how quickly the integration can be implemented after the arbitrum mainnet goes live.Also we have popular listings and other things are in the pipeline in terms of OKExChain, stay tuned.Image by Buffik from Pixabay .

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Interview: OKEx Team Comes Together to Answer Few Questions About Crypto Market

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