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.
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.
About the author / Aline Barbosa
See how to apply for the United℠ Explorer Card
Get a card that offers exceptional rewards for travelers! Read this post and learn how to apply for United℠ Explorer Card!Keep Reading
PayPal has been losing users on the account of a new policy
PayPal suffered a lot of criticism this week after updating their policy with a $2,500 fine for expressing misinformation. Read on for more.Keep Reading
Habit trackers: The 5 tips from therapists to keep up with your goals
Learn how to use habit trackers with this guide from therapists. From understanding why they work to identifying the best app for you.Keep Reading
You may also like
Milestone® Mastercard® Credit Card review: Don’t let your credit score hold you back
Worried that a less-than-perfect credit score is keeping you from the card you need? This Milestone® Mastercard® Credit Card review can help!Keep Reading
Was the Amazon package not delivered? Here are some tips on what to do!
If your Amazon package was not delivered, don’t panic! We've got the steps you need to take to get it sorted out.Keep Reading