• Crypto experienced a small dip in early February, but analysts and crypto players suggested that volatility was low compared to other markets.
• Bitcoin has remained stable at the $23,000 level, with experts suggesting it could struggle to reach $25,000 in the short term.
• 2022 saw an all-time high for bitcoin of around $68,000 before it lost 70% of its value by the end of the year.
Crypto Experiences Sudden Lack of Volatility
In early February 2021, crypto assets such as bitcoin experienced a small dip after weeks of riding the bull wave and increasing their prices. Despite this, analysts pointed out that right now there is very little volatility across the board compared to other markets such as stocks or FX. Bitcoin has currently been content staying around the $23k level and experts suggest it might struggle taking out $25k over the short-term due to rising yields.
The Worst Year on Record for Crypto
The previous year saw one of the worst performances ever for digital currencies like bitcoin. After hitting its all-time high in November 2020 at around $68k per asset, it quickly lost 70% of its value by December 2022 and was down to about mid-$16K range by then. This massive drop resulted in an industry-wide loss of more than 2 trillion in valuation within a single year which was due to heavy speculation from investors, bankruptcies and bad behaviour from certain players such as FTX.
Sentiment Still Remains Strong
Despite these losses however sentiment still remains strong among traders and investors who believe things could have been a lot worse had it not been for the current low volatility across all crypto markets. Senior analyst at OANDA Edward Moya noted that “It is rather shocking to see how little crypto is moving considering all the volatility across fixed income, stocks, FX and commodities” suggesting that while yields might continue to rise this should be seen as good news overall for those invested in digital currencies like bitcoin.
Tech Dev’s Analysis
Analysts like Tech Dev (known for sharing his thoughts on Twitter) went on record saying “When liquidity flows, bitcoin moves” going on further say that five out of five times when major BTC impulses followed CN10Y/DXY breaking above its one-year moving average as well as monthly MACD crossing bullish so investors should watch closely what happens this time too with regard to similar patterns forming again soon enough.
In conclusion then it appears that despite some initial dips here and there things overall remain stable within crypto markets – especially when taking into consideration how volatile other markets are right now – resulting in many analysts feeling optimistic about what lays ahead for digital currencies like Bitcoin throughout 2023 given its current stability levels despite rising yields across other industries too