Factors That Caused Yearn.finance’s YFI Will Explode Higher
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Earn.finance’s YFI token has been experiencing huge volatility in the past few days, and its price fell to a low of $7,500 before experiencing the most severe short squeeze ever. Within hours of reaching these lows, the sudden influx of buyer pressure caused it to surge to a high of $18,000, marking a rebound of more than 100% from its daily low. This move revitalized the DeFi sector, causing a surge in DEX trading volume, and investors began to flock to the troubled sector.
Since DeFi blue chip stocks have maintained sustainable development momentum in the past few days, it is likely that this is just the beginning of a bull market trend reversal. The macro climate in the cryptocurrency market is conducive to this possibility, because the huge power of Bitcoin and Ethereum may trigger capital turnover events, which can be converted into higher Beta assets such as Year.finance’s YFI. As long as BTC remains stable, investors will undoubtedly turn to higher-risk assets to increase its profitability.
An economist who pays attention to cryptocurrency now points to the three trends favored by Yearn.finance, and points out that they all herald upcoming trends.
At the time of writing, Yearn.finance’s YFI token is up 10% at its current price of $15,300. This marked a significant rebound from daily lows below $13,000. These lows were set shortly after it bounced to a high of $18,000, and this decline occurred due to aggressive profit taking. The recent move is not just a dead cat rebound or a short squeeze, which shows that it has not continued to fall.
An economist who pays attention to cryptocurrency is studying 3 trends that indicate that altcoins such as Yearn.finance’s YFI will go higher in the next week. He called this week a “risk week” and added that Bitcoin will be traded at risk, and altcoin traders prefer a higher beta than the base cryptocurrency. The convergence of these trends will undoubtedly benefit blue chip DeFi altcoins such as YFI.