• Crypto experienced a small dip in early February after weeks of increasing prices.
• Analysts and crypto players pointing out that volatility across the board for stocks is rather high compared to crypto which 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 it losing more than 70% of its value.
Sudden Lack of Volatility in Crypto
Crypto experienced a small dip in early February 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. Despite this, several analysts and crypto players have suggested that sentiment is still strong enough to keep the industry stable due to relatively low levels of volatility when compared to other markets such as fixed income, stocks, FX, and commodities.
Analysis from Edward Moya
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. With yields likely to continue to rise, bitcoin might struggle taking out [the] $25,000 level over the short-term.
Analysis from Tech Dev
Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned the following to his 400,000+ followers: When liquidity flows, bitcoin moves. CN10Y/DXY broke above its one-year moving average… And its monthly MACD has crossed bullish. Five out of the last five times, a major BTC impulse followed. What happens this time?
The Worst Year On Record
In 2022 bitcoin had risen to an all-time high of about $68000 per unit before losing more than 70 percent of its value and falling into mid-$16K range by years end due largely to heavy speculation bankruptcies and bad behavior from players like FTX resulting in losses totaling more than $2 trillion in valuation throughout 12 months .
Overall cryptocurrency appears much less volatile now compared with where it was in 2021 with analysts suggesting sentiment remains strong enough keep industry stabilized going forward . While there are still predictions floating around as what will happen next , current signs point towards stability which should be seen as good news for investors .