• Crypto experienced a dip in February after weeks of its main assets (such as bitcoin) increasing their prices.
• Analysts and crypto players were quick to point out that volatility across the board for things like stocks is rather high, while crypto is experiencing only marginal volatility.
• 2022 was easily the worst year on record for assets like bitcoin, with heavy speculation, bankruptcies, and bad behavior driving it to lose more than $2 trillion in valuation in just under 12 months.
Crypto Experiences Sudden Lack of Volatility
Early February saw a slight dip in crypto prices after weeks of riding the bull wave and increasing their values. Analysts have noted that compared to other assets such as stocks which are experiencing much higher levels of volatility, crypto is exhibiting much more marginal changes.
2022: Worst Year On Record For Crypto Assets
The year 2022 proved to be a terrible one for cryptocurrencies such as Bitcoin as we saw heavy speculation and bad behaviour from players such as FTX leading it to lose more than $2 trillion in value over just 12 months. Bitcoin’s all-time high of around $68,000 per unit plummeted to the mid-$16K range by the end of the year.
Experts Point Out Stable Sentiment
Despite this sharp decline in market value, experts suggest that sentiment still remains strong enough within the industry to keep it stable. Edward Moya – senior analyst at OANDA – mentioned how shocking it was to see how little crypto was moving considering all the volatility across other markets such as FX and commodities. Tech Dev also commented on Twitter about liquidity flows and how five out of five times major BTC impulses followed when this happened before.
Analysts Offer Short-Term Predictions
Analysts predict that with yields likely continuing to rise it could become harder for Bitcoin to take out the $25,000 level over the short-term – something which could potentially hold back any major BTC impulses from occurring anytime soon.
Conclusion
In conclusion, despite seeing some dips early on in February there appears to still be an overall stable sentiment within the cryptocurrency industry at present – although analysts are suggesting that taking out $25k may prove difficult for Bitcoin over the short-term due to rising yields coming into play.