• Crypto experienced a small dip in early February after weeks of rising prices.
• Analysts and crypto players were quick to point out the low volatility currently present in the crypto market compared to other assets like stocks.
• 2022 was an especially difficult year for digital currency, with heavy speculation, bankruptcies, and bad behavior from players causing the space to lose over $2 trillion in valuation.
Crypto Experiences a 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.
While at first glance it looked like the bears were once again beginning to enter the fray, there were several analysts and crypto players out there who felt the situation was better than it appeared, and that things could have been a lot worse. One of the issues they were quick to point out is that right now, volatility across the board for things like stocks is rather high. By contrast, crypto is experiencing only marginal volatility.
Analysts Point Out Low Volatility
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. An impressive jobs report is driving rate hike calls and pouring cold water on those rate-cut bets for the end of the year. Bitcoin seems content hanging around the $23,000 level, and that should be viewed as good news for crypto traders.
Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned: When liquidity flows bitcoin moves.
The Difficult Year of 2022
2022 was easily the worst year on record for assets like bitcoin. The asset – which had risen to a new all-time high of about $68,000 per unit in November of 2021– wound up losing more than 70 percent of its value and had fallen into mid-$16K range by 2022’s end.
. In all ,the digital currency arena lost more than $2 trillion in valuation in just under 12 months. It was a disastrous situation overall.
Staying Stable Despite Volatility Elsewhere
With yields likely to continue to rise ,bitcoin might struggle taking out [the]$25 ,000 level over short-term .However sentiment still remains strong enough among many analysts & investors alike too keep industry stable .Tech Dev also mentions when liquidity flows bitcoin moves .CN10Y/DXY broke above one -year moving average& monthly MACD has crossed bullish.
.Conclusion
Despite turbulence throughout 2021 & 2020 Crypto appears calm & steady with minimal price movements amidst volatile other markets .Many experts suggest this period will pass & sooner or later we will experience next Bull Run soon within Cryptocurrency space as well.
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