The European cup final came to a thrilling end last night with Italy beating England in penalties to take the cup home. The end of the major football tournament could prove bullish for the crypto market which has been relatively cold for over two months now. Experts believed the start of the Euro cup saw a major rerouting of money from crypto to football betting and with its end, the money can flow back into the crypto market again.
The crypto market has experienced a downtrend since May second week’s sell-off and hasn’t recovered since then despite occasional breakouts. The liquidity in the market has dried up and volatility has increased. The Euro cup also took a toll with a serious amount of money being liquidated by football fans to bet on their favorite teams, and now that the tournament has come to an end, experts expect a new surge of crypto investments.
How Flow of Money Into Crypto Market Change Marker Sentiments?
An additional flow of cash in the market leads to a rise in bullish sentiments, as more people invest in digital assets the market goes up. A similar phenomenon was observed during the government-issued stimulus checks, where people invested their stimulus money in inflation hedges such as Bitcoin and even in the stock market. Whenever a government announces stimulus packages both the traditional market and the crypto market see a new stream of revenue turning market sentiments green.
The total crypto market cap has come down under $1.5 trillion from its all-time high of over $2.5 trillion just a couple of months ago. A majority of cryptocurrencies are trading at 50% less than their all-time high. The market sentiment is currently being dominated by bears and as traders start losing hope of seeing a bullish surge, the flow of football betting money could help in bringing back the bulls to the market for the second leg of this bull run.
The incoming week could get more volatile for Bitcoin with the unlocking of GBTC shares, but crypto experts suggest the market would register another bullish surge before topping out.