• Crypto experienced a small dip after weeks of its main assets (such as bitcoin) increasing their prices.
• Analysts and crypto players pointed out that crypto is experiencing only marginal volatility compared to other assets.
• In 2022, assets like Bitcoin fell by more than 70% and the crypto space lost $2 trillion in valuation.
Crypto Experiences Sudden Lack of Volatility
In early February, crypto saw a small dip after a period of its main assets riding the bull wave and increasing their prices. However, compared to stocks and other assets, crypto is experiencing only marginal volatility. This lack of movement has been viewed positively by analysts who believe this sentiment is keeping the industry stable.
2022: A Tough Year for Crypto Assets
The year 2022 was one of the worst on record for many cryptocurrency assets like bitcoin. By November 2021, bitcoin had risen to an all-time high of $68,000 per unit but then lost more than 70 percent of its value by December 2022, falling into the mid-$16K range. The industry as a whole lost more than $2 trillion in valuation over 12 months due to heavy speculation and bankruptcies within the sector.
Analysts Point Out Lack of Volatility
Edward Moya – senior analyst at OANDA – said it was „shocking“ how little crypto was moving considering how much volatility there was across fixed income, stocks, FX, and commodities. He went on to suggest that yields were likely to continue to rise which could make it difficult for bitcoin to break out above its current $23,000 level over the short-term. Meanwhile Tech Dev – an analyst known for sharing his thoughts on Twitter – suggested that when liquidity flows bitcoin moves – something he believes could be seen in this current market climate too.
Why Is Crypto So Calm?
It’s unclear why exactly this sudden lack of volatility has occurred within the cryptocurrency space but some have attributed it to investors waiting patiently until they can see greater returns from altcoins or DeFi projects before making any significant investments into BTC again. Others have argued that with so much uncertainty around traditional markets right now due to inflation fears that investors are instead looking towards digital currencies as a safer bet – meaning more stability overall in terms of pricing movements rather than wild fluctuations up or down depending on news events or external factors outside their control such as regulation changes or new technologies being developed etc…
Overall it appears that although there’s still plenty of activity going on within the cryptocurrency space right now – including many new projects being launched and various regulatory changes taking place – overall things are staying relatively calm when it comes to pricing movements across major coins like Bitcoin which is generally seen as a positive sign for long term growth prospects within this industry going forward into 2023 and beyond!