Polygon (MATIC) Sees Surge In Whale Buying Despite US Regulatory Pressure

Christian Encila

2 years ago

3 mins read

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Polygon (MATIC), a blockchain scalability platform, finds itself in the grip of negative sentiment that casts a shadow over its prospects for a strong price recovery. The crypto market has been a volatile space, prone to sudden shifts in sentiment, and MATIC is no exception.

The recent downturn in the sentiment surrounding MATIC has left investors and traders cautiously observing the price charts.

Once considered a promising project in the crypto space, Polygon’s potential for growth has been impeded by the recent actions of the US Securities and Exchange Commission against altcoins.

Will the negative sentiment continue to hinder MATIC’s potential for a strong price recovery?

Polygon Whales Unfazed By US Regulatory Pressure?

The latest data on MATIC reveals that the pressure from US regulators has not seemed to totally unsettle some prominent investors, as evidenced by a notable increase in whale transactions exceeding $1 million in recent days.

Source: Santiment

However, despite the increase in whale appetite, the cryptocurrency has failed to sustain a strong upward momentum at the time of writing.

Source: CoinMarketCap

CoinMarketCap reports MATIC’s current price as $0.5818, reflecting a decline of 2.33% within the past 24 hours. Additionally, the cryptocurrency has witnessed a substantial slump of 25.93% over the past seven days.

In addition to the impact of regulatory pressure, the movements of MATIC’s supply on exchanges, which serves as an indicator of short-term selling pressure, have exhibited rapid fluctuations during the same period.

MATIC 24-hour price movement. Source: CoinMarketCap

It experienced a sharp increase, followed by a decline, and then another spike before eventually easing at the time of publication.

These developments indicate that the selling pressure on MATIC remains a significant concern, primarily due to the prevailing regulatory uncertainty.

MATIC market cap currently at $5.4 billion. Chart: TradingView.com

Fed’s Pause On Rate Hikes Fails To Stabilize Crypto Markets

On the whole, financial markets have continued to exhibit volatile movements, causing cryptocurrencies to decouple from the performance of traditional equities markets.

The recent downturn in the crypto market seems to be linked to the press conference held by Federal Reserve Chairman Jerome Powell on June 14, during which he announced that the central bank would temporarily halt rate hikes for the month of June.

While this decision aligned with investors’ expectations, it had an unexpected effect on the crypto market. Instead of stabilizing, the market experienced a reversal in its course and resumed the ongoing sell-off that has persisted for the past three weeks.

The presence of substantial macroeconomic challenges, coupled with the anticipation of future rate hikes and low trading volume, suggests that the volatility in the cryptocurrency market is likely to persist in the foreseeable future.

The prevailing headwinds, including economic factors on a larger scale, have contributed to the unpredictability and turbulence in the crypto market.

Featured image from Analytics Insight

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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