• Crypto experienced a small dip in February after weeks of its main assets increasing their prices.
• Analysts and crypto players pointed out the low volatility across crypto compared to other markets.
• In 2022, the crypto space lost $2 trillion in valuation due to speculation, bankruptcies, and bad behavior from players.
Crypto Experiences Low 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 5th, the crypto space fell by a little over two percent and wound up stuck at just over $1 trillion. Experts suggested that sentiment is still strong enough to keep the industry stable despite the lack of volatility compared with other markets such as stocks.
Analysts Point Out Lack Of Volatility
Edward Moya – senior analyst at OANDA – explained in a recent interview that 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 that when liquidity flows, bitcoin moves but it may struggle taking out [the] $25000 level over the short-term due to rising yields.
A Summary Of The Situation In 2022
In 2022, bitcoin had risen to an all-time high of about $68000 per unit in November of the prior year but then went on to lose more than 70 percent of its 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 resulting in a loss of more than $2 trillion in valuation within 12 months.
What Can We Expect Moving Forward?
With sentiment still strong enough to keep things stable for now despite low volatility across crypto compared with other markets such as stocks; it remains unclear what will happen next for cryptocurrency moving forward. Analysts are suggesting that bitcoin might struggle taking out [the] $25000 level over short-term due to rising yields but this could change if liquidity continues to flow into cryptocurrencies again soon.
Conclusion
Overall it can be seen that cryptocurrencies have been experiencing low volatility compared with other markets such as stocks which has kept things relatively stable for now despite losses suffered last year due to heavy speculation and bad behavior from players like FTX which resulted in a loss of more than $2 trillion in valuation within 12 months. It remains uncertain what will happen next for cryptocurrency but analysts suggest bitcoin could struggle taking out [the]$25000 level over short-term due to rising yields unless liquidity continues flowing into cryptocurrencies again soon