News
Bitcoin prices are stabilizing – but that’s not a bad thing!
Cryptocurrencies are well known for their high volatility, but Bitcoin’s 20-day run along the $20,000 shows that stability might be a good thing for crypto investors. Check the full scoop below.
Advertisement
by Aline Barbosa
The world’s most notorious crypto prices might signal steadiness in the market.
October presented crypto investors with a surprise as Bitcoin – the world’s most famous cryptocurrency – seems to have stabilized. But according to analysts, this isn’t exactly a bad thing. The lack of volatility could indicate a “bottoming out” in Bitcoin’s prices.
Cryptocurrencies have fallen significantly since a fiery run in 2021, in which Bitcoin prices reached an impressive $68,990. However, in the past couple of months, the digital currency has bounced around $20,000. Signaling that maybe the market’s volatility is settling.
According to data from Kaiko – a crypto research firm – Bitcoin’s 20-day ongoing volatility dropped below that of stock market indexes for the first time since 2020. Both crypto and stocks are down in 2022 as the Fed continues to increase rates. The strengthening dollar has also weighed on the category.
The correlation between stocks and Bitcoin has expanded over time as more traditional investors have started to invest in crypto. Bitcoin’s recent price stabilization signals an ease in volatility, which is a good sign according to some investors.
The head of international crypto exchange Luno – Vijay Ayyar – mentioned that Bitcoin has been bound by a range between 18 and 25k for the past four months. That could indicate a potential bottoming out pattern and consolidation, especially given what the market is seeing in the Dollar index top.
He stated that in previous cases, like what happened in 2015, the market witnessed Bitcoin bottom out when DXY has topped. He believes the same pattern is repeating now. The co-founder of crypto firm Nexo, Antoni Trenchev, says that the digital currency’s price stability is a sign that the crypto market is becoming less fragmented.
Is Bitcoin signaling an end to crypto winter?
This year was brutal for cryptocurrencies, which have suffered a significant comedown. Since the height of the 2021 rally, they have lost over $2 trillion in value. Bitcoin – the world’s largest crypto – dropped around 70% of its peak in November 2021.
The “crypto winter” that is happening now is a result of the Federal Reserve’s aggressive tightening. The Fed has been increasing rates in an effort to curb inflation, and that had a direct impact in the crypto world.
Big cryptocurrency companies like Three Arrows Capital were astounded by the pressure on crypto prices. That only helped to accelerate the market’s downward spiral. However, investors now believe that the ice is starting to melt.
According to Ayyar, there are signs of a current accumulation stage. That’s when traditional investors are more favorable to invest in Bitcoin due to its price stabilization. He says that the fact that Bitcoin is stuck in the current price range makes investing in it a bit boring. However, it also means that it’s when retail starts to lose interest and money begins to flow.
You will be redirected to another website
Mastercard wants to make crypto mainstream
One of the biggest names in the credit card world is teaming up with national banks to start a crypto trading program. The idea is to make digital assets more accessible to the masses. Follow the link below to learn more.
Mastercard wants to make crypto mainstream
The payments company is launching a new program that will offer crypto trading. Read on for more!
Aline Barbosa
Trending Topics
Student loan forgiveness scams are already happening
If you’re applying for student debt cancelation, the FBI wants you on high alert for possible student loan forgiveness scams.
Keep ReadingThe best places to yacht in the US
There are plenty of amazing places near and far where yachters can go sailing. Check out our list of the best places to yacht in the US!
Keep ReadingThe top 10 Best-Selling Albums of All Time
Wondering which albums have sold the most copies? Here are the top 10 best-selling albums of all time. See if your favorite made it!
Keep ReadingYou may also like
Discover it® Student Cash Back review: The best credit card for college students
Want to know what the best credit card for college students is? Look no further than our Discover it® Student Cash Back review!
Keep ReadingTop 10 LCOL areas to live in the US: they will fit your budget
Save some money by picking one of these LCOL areas to live in the U.S. Check the benefits of each one to find the best for you.
Keep ReadingWhat is Tumblr? Is it worth leaving Twitter for it?
Learn more about Tumblr, the microblogging platform that allows users to share multimedia and content with their followers.
Keep Reading