Analyzing the current state of the cryptocurrency market, especially its protracted rally, experts are progressively realizing that there are no strong fundamental factors for such sky-high prices of digital currencies. This may spark a sell-off across the crypto market in the near future, analysts warn.

The previous record spikes in cryptocurrencies derived from really compelling reasons, including the legal recognition of digital assets as well as software technological features and functions. Now, growth in the crypto market is driven by messages on Twitter. Undoubtedly, this is about the founder of several leading-edge companies, a business magnate, and the genius of our time, Elon Musk. His tweets helped bitcoin surge to new highs.

The spike in the value of cryptocurrencies, in turn, sparked interest in cryptocurrency exchanges among large institutional investors. Thus, one of these exchanges has recently announced its intention to pursue an IPO, that is, to go public. This is also a positive development for the crypto market. However, such a strong dependence on upbeat news may result in significant losses. If now bitcoin is in certain equilibrium, its further dynamics are not clear, industry expert Michael Ross-Johnson noted. Any negative news item could drag the virtual coin down. Everything will depend on the news feed, the analyst added.