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. Crypto Is Staying Still On or around February 5, the crypto space fell by a little over two percent and wound up stuck at just over 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. For the most part, things have really
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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.
Crypto Is Staying Still
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. For the most part, things have really calmed down compared with where they were in 2022, and experts were quick to suggest that sentiment is still strong enough to keep the industry stable.
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.
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?
Things Went from Really Bad to Somewhat Better
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 the prior year – wound up losing 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.
In all, the digital currency arena lost more than $2 trillion in valuation in just under 12 months. It was a disturbing sight and for many, crypto was dead, though 2023 has brought about some newfound bullish sentiment given the world’s number one digital asset by market cap has shot through the ranks and added about $7,000 to its price at the time of writing. BTC is still hovering at around the $23K mark.