Crypto Volatility Shrinks: Is a Bull Wave on the Horizon?


  • Crypto experienced a small dip recently after weeks of its main assets increasing in value.
  • The crypto market is experiencing low volatility when compared to other markets such as stocks.
  • Last year, the crypto space lost more than $2 trillion in valuation after heavy speculation and bankruptcies.

Crypto Experiences Small Dip After Weeks of Growth

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. Several analysts felt that sentiment was still strong enough to keep the industry stable.

Comparisons with Other Markets

Edward Moya – senior analyst at OANDA – explained in a recent interview: It is rather shocking to see how little crypto is 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, and that 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.

Tech Dev’s Prediction for Crypto

Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned that when liquidity flows, bitcoin moves. He then made five predictions based on CN10Y/DXY breaking above its one-year moving average and its monthly MACD crossing bullish five times in a row.

Bitcoin Struggles during 2022

2022 was easily the worst year on record for assets like bitcoin. The asset – which had risen to a new all-time high of about $68,000 per unit in November 2021– wound up losing more than 70 percent of its value and had fallen into the mid-$16K range by the time 2022 was on its way out. The digital currency arena lost more than $2 trillion in valuation in just under 12 months due to speculation and bankruptcies from players like FTX.


Crypto appears to be slowly recovering from last year’s losses but is still far away from reaching previous highs again anytime soon given current levels of volatility across other markets such as stocks and commodities