Hello dear readers, let this post serve to share with all of you some analysis that projects that the price action of Bitcoin and the rest of cryptocurrencies show a slight correlated calm that could change soon, in a scenario whose monthly behavior is the least volatile in the last two yearss.
To tell the truth, Bitcoin is at its highest annual price correlation with respect to the rest of the alternative cryptocurrencies also known as altcoins, i.e. in previous years, their prices had not been as aligned with each other as they are now.
Currently within the cryptocurrency market some events such as FTX and Binance caused a loss of confidence and a greater exodus of investors, however, despite this behavior, according to Glassnode records, cryptocurrency prices have remained slightly calm lately, while the monthly volatility recorded has been the lowest in just over two years..
The last time such a level of price variability was seen was in 2020, just before a bull rally. And prior to that, only the bottom of the 2018 bear market had such low monthly volatility..
It is worth noting that the end of each year usually marks the beginning of a period of increased volatility in Bitcoin. And should this occur, altcoins would also enter into greater price variability if they continue to maintain correlation.
Institutional investors expect increased volatility in Bitcoin and altcoins, other data also reflects that some futures traders are betting that there will be greater price variability in Bitcoin and altcoins.
SOURCES CONSULTED
Marketing.Kaiko Binance Volume Recovers Despite Mass Outflows. Link
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OBSERVATION:
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