Volatility is nothing new to the crypto market, but when it appears, it can still be jarring. On Sept. 22, the crypto market saw a steep sell-off in nearly every top cryptocurrency. Bitcoin (CRYPTO: BTC) sank by 3%, while Ethereum (CRYPTO: ETH) fell by 9%, the fall triggered by a liquidation of $1.5 billion in leveraged crypto positions.
Is the recent crypto pullback a healthy correction? Or is it yet another sign that the top cryptocurrencies could be wildly overvalued? Let’s take a closer look.
In the crypto market, the one trade that captivated investors during the summer was the so-called DAT trade. DAT stands for digital asset treasury, and it has become a shorthand way to refer to publicly traded companies that do nothing but buy a specific cryptocurrency.