Crypto Volatility Plunges: Is Crypto Stable or Stagnant?
• Crypto experienced a small dip in early February after several weeks of its main assets increasing in value.
• Analysts pointed out that crypto is experiencing only marginal volatility compared to other markets such as stocks, FX and commodities.
• In 2022, the crypto space was marred by heavy speculation and bad behavior from players, leading to losses of over $2 trillion in valuation.
Crypto Market Experiences Sudden Lack of Volatility
In early February, the crypto market experienced a small dip after weeks of its main assets increasing their prices. This was surprising to many analysts who noted how much less volatile this market has been compared to other markets such as stocks, FX and commodities.
Impact of 2021 on Crypto Space
The year 2022 left an especially huge impact on the crypto space as it saw heavy speculation, bankruptcies, and bad behavior from players like FTX leading to losses of over $2 trillion in valuation within 12 months.
Analysts Point Out Lack Of Volatility
Experts have suggested that sentiment is still strong enough for the industry to remain stable despite the lack of volatility currently being seen across the board for cryptos like bitcoin. Senior analyst at OANDA Edward Moya commented: “It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX, and commodities.“ Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned: “When liquidity flows, bitcoin moves” suggesting that there could be further movement in the near future if liquidity increases again.
Bitcoin Struggles To Take Out $25K Level
Currently bitcoin has been content hanging around the $23k level which should be viewed as good news according to Moya who continued: „With yields likely to continue to rise, bitcoin might struggle taking out [the] $25k level over the short-term.“
Despite BTC dropping by more than 70% during 2022 due to speculation and poor behavior from players – causing losses of more than $2 trillion – experts suggest sentiment remains strong enough for stability within the industry; with bitcoin content hovering around the $23k mark at present time but predicted difficulty when trying to take out $25K level over short-term due rising yields.