• Crypto experienced a small dip in early February after weeks of its main assets (such as bitcoin) increasing their prices.
• Analysts and crypto players pointed out that volatility across the board for things like stocks is rather high compared to crypto’s only marginal volatility.
• In 2022, crypto experienced its worst year on record with assets like bitcoin losing more than 70 percent of their value.
Crypto Experiences Sudden Lack of Volatility
Crypto experienced a small dip in early February after weeks of its main assets (such as bitcoin) 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. Several analysts and crypto players out there suggested that sentiment is still strong enough to keep the industry stable. Edward Moya – senior analyst at OANDA – explained in a recent interview: It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX, and commodities.
Volatility Across Board Higher Than Crypto
Analysts and crypto players were quick to point out that right now, volatility across the board for things like stocks is rather high compared to crypto’s only marginal volatility. For the most part, things have really calmed down compared with where they were in 2022, which could be viewed as an indication of good news for crypto traders. Tech Dev – an analyst known for sharing his thoughts on Twitter – mentioned the following to his followers: When liquidity flows, bitcoin moves… Five out of the last five times, a major BTC impulse followed. What happens this time?
Worst Year On Record in 2022
In 2022, crypto experienced its worst year on record with assets like Bitcoin losing more than 70 percent of their value and had fallen into the mid-$16K range by the time 2022 was on its way out. The space was marred by heavy speculation, bankruptcies, and bad behavior from players like FTX leading to an overall loss of more than $2 trillion in valuation in just under 12 months.
Sentiment Still Strong Enough To Keep Industry Stable
With yields likely to continue to rise according to Edward Moya’s analysis ,bitcoin might struggle taking out [the] $25000 level over short-term; however analysts suggest sentiment is still strong enough to keep the industry stable overall.
Conclusion
Despite having one of it’s worst years on record in 2021 due largely due too heavy speculation and bad behavior from certain actors within this space; Overall sentiment towards Bitcoin remains strong as evidenced by analysts pointing towards low levels of volatility within this sector being something positive for traders going forward