• Crypto experienced a small dip after weeks of its main assets increasing in price.
• Analysts and crypto players pointed out that right now, volatility across the board for things like stocks is rather high while crypto is experiencing only marginal volatility.
• 2022 was easily the worst year on record for assets like bitcoin, with heavy speculation, bankruptcies, and bad behavior leading to more than $2 trillion in losses.
Crypto Market Experiences Lack of Volatility
Recent weeks have seen crypto prices increase and ride the bull wave, but early February caused a small dip as well. Despite this dip, analysts point out that compared with other markets such as stocks and commodities, crypto is experiencing only marginal volatility – a sign of strong sentiment keeping the industry stable.
Sentiment Stays Strong Despite Dips
Edward Moya from OANDA explains that it’s shocking to see how little crypto has been moving considering all the other market fluctuations. With yields likely to continue to rise, bitcoin might struggle taking out $25K level over the short-term. Tech Dev further adds that when liquidity flows bitcoin moves; five out of the last five times major BTC impulse followed when CN10Y/DXY broke above its one-year moving average and monthly MACD crossed bullish.
Crypto’s Worst Year on Record: 2022
2022 proved to be an incredibly bad year for assets like bitcoin – seeing more than 70% value loss in just under 12 months due to heavy speculation, bankruptcies, and bad behavior from players like FTX across the digital currency arena causing a loss of more than $2 trillion in valuation overall.
Positive Outlook After 2022 Losses
Despite these losses however, sentiment still remains strong enough to keep the industry stable – especially when comparing against other markets such as stocks and commodities which are currently experiencing much higher levels of volatility. This indicates a positive outlook for future prospects within the cryptocurrency space despite last year’s losses.
Conclusion
The recent lack of volatility in cryptocurrencies could indicate stability within this market despite major losses experienced throughout 2022 due to speculation, bankruptcy and bad behaviour from key players within it. Whilst other markets such as stocks and commodities experience high levels of volatility currently; cryptocurrencies remain relatively stable which provides a positive outlook for future prospects within this space going forward.