• Crypto experienced a small dip in early February after weeks of increasing prices.
• Analysts noted that current volatility across the board is high compared to crypto, which is surprisingly stable.
• In 2022, bitcoin lost more than 70 percent of its value and the entire crypto space lost over $2 trillion in valuation.
Crypto Market Experiences Sudden Lack of Volatility
In early February, after weeks of rising prices, the crypto space experienced a small dip. Despite this sudden change from its prior bull wave, analysts have pointed out that volatility across other markets is still much higher compared to crypto; as such, it appears that sentiment remains strong enough to keep the industry relatively stable.
Analysis on Situation
Edward Moya – senior analyst at OANDA – commented on this situation: “It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX, and commodities… Bitcoin seems content hanging around the $23,000 level”. Additionally Tech Dev – an analyst known for sharing his thoughts on Twitter – shared his own predictions with his 400,000+ followers: “When liquidity flows, bitcoin moves”.
Worst Year on Record for Crypto
The year 2022 was easily one of the worst years on record for assets like bitcoin; it had risen to a new all-time high in November 2021 but then lost more than 70 percent of its value by year’s end and was trading in the mid-$16K range by December 2022. Furthermore, speculation and bad behavior from players like FTX resulted in an overall loss of about $2 trillion across the entire digital currency arena during this time period.
Sentiment Remains Strong
Despite these losses throughout last year however, analysts are now noting that sentiment within the industry remains strong enough to keep things relatively stable – especially when compared with other markets‘ levels of volatility – suggesting that investors may not be so quick to exit their positions or sell off their holdings even if there were further dips in price.
Bitcoin Could Struggle Taking Out $25K Level
With yields likely to continue rising going forward though, experts suggest that bitcoin might struggle taking out [the] $25K level over the short-term – meaning traders should temper their expectations accordingly when it comes to any potential gains they may be hoping for in the near future.
