• Crypto assets experienced a small dip in early February, while stock markets experience high volatility.
• Analysts point out that the lack of crypto volatility is a good sign and suggest that sentiment is still strong enough to keep the industry stable.
• In 2022, crypto assets like bitcoin lost more than 70 percent of their value due to speculation, bankruptcies, and bad behavior.
Crypto Dip in Early February
In early February, crypto experienced a small dip after weeks of its main assets (such as bitcoin) riding the bull wave and increasing their prices. On or around February 5, the crypto space fell by a little over two percent and wound up stuck at just over $1 trillion. Despite this dip, analysts were quick to suggest that sentiment is still strong enough to keep the industry stable.
High Volatility Across Markets
Edward Moya – senior analyst at OANDA – explained in a recent interview that it was rather shocking to see how little crypto was moving considering all the volatility across fixed income, stocks, FX, and commodities. An impressive jobs report is driving rate hike calls and pouring cold water on those rate-cut bets for the end of the year. Bitcoin seems content hanging around the $23,000 level, which should be viewed as good news for crypto traders. With yields likely to continue to rise, bitcoin might struggle taking out [the] $25,000 level over the short-term.
Worst Year on Record for Bitcoin in 2022
The year 2022 was easily one of record lows for assets like bitcoin – which had risen to an all-time high of about $68K per unit before tanking down into mid-$16K range by December of that same year. Heavy speculation within the digital currency arena caused major losses totaling more than $2 trillion throughout 2021 alone – leading many analysts and players alike wonder what kind of future lies ahead for cryptocurrencies going forward into 2023.
Liquidity Flows Affecting Bitcoin Movement
Tech Dev – an analyst known for sharing his thoughts on Twitter – mentioned recently that when liquidity flows, bitcoin moves accordingly with CN10Y/DXY breaking above its one-year moving average and monthly MACD crossing bullish five times out of five occasions where BTC experienced major impulse following suit shortly afterwards .
Sentiment Remains Positive Despite Losses
Despite heavy losses suffered by cryptocurrency throughout 2019-2022 as well as current market trends favoring stocks instead – there are still analysts who are optimistic about Bitcoin’s potential going forward into 2023 due its current stability around $23K despite rising rates & yields looking unlikely to breach $25K mark anytime soon .