Crypto Volatility Hits Record Low: Analysts Explain Why It’s Good News

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• Crypto experienced a dip in early February after weeks of its main assets increasing in prices.
• Analysts pointed out that there is a sudden lack of volatility for crypto, while stocks and other markets are experiencing higher levels of volatility.
• In 2022, the crypto space was marred by heavy speculation, bankruptcies, and bad behaviour which caused its market cap to lose over $2 trillion in valuation.

Crypto Experiences Sudden Lack of Volatility

In early February, crypto experienced a small dip after weeks of its main assets (such as bitcoin) riding the bull wave and increasing their prices. On or around February 5, the crypto space fell by a little over two percent and wound up stuck at just over $1 trillion. This sudden lack of volatility in comparison to other markets such as stocks has been noticed by analysts and crypto players alike.

Sentiment Still Strong Enough To Keep Industry Stable

Edward Moya – senior analyst at OANDA – explained that it is rather shocking to see how little movement there is across the board for cryptos considering the high levels of volatility present in fixed income, stocks, FX, and commodities markets. He suggested that sentiment is still strong enough to keep the industry stable with Bitcoin content hanging around the $23 000 level – suggesting good news for traders.

Worst Year on Record For Assets Like Bitcoin

Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned that when liquidity flows bitcoin moves accordingly. However this didn’t seem to be the case during 2022 which was recorded as one of the worst years on record for assets like bitcoin with it losing more than 70% of its value from an all-time high at $68 000 per unit down to mid-$16K range by year’s end. The digital currency arena also lost more than $2 trillion in valuation during this time due to heavy speculation, bankruptcies, and bad behaviour from players like FTX.

Rate Hike Calls Could Affect Bitcoin’s Short Term Performance

The current rate hike calls coupled with bets being placed against rate cuts could affect bitcoin’s performance over short terms if yields continue to rise making it difficult for BTC take out [the] $25 000 level over this period. The impact these rate hikes have on liquidity will be monitored closely by analysts as well as investors who are looking forward towards strong performance from their cryptocurrencies investments in the near future.

Cryptocurrency Market Remains Stable Despite Losses

Despite losses suffered last year cryptocurrency remains relatively stable today thanks do sentiment remaining steady amongst investors despite some bearish trends present within certain market spaces such as commodities and fixed income . Analysts will continue monitoring changes made across different markets alongside any significant movements within cryptocurrency so they can provide suitable advice regarding investment opportunities where appropriate .