“Lower Volatility Confounds Crypto Traders Used to Yo-Yo Swings”
October 25, 2022
“In contradiction to its usual tempestuousness, Bitcoin and some other cryptocurrencies have become less choppy, stupefying market-watchers who’ve long known them for their volatility.
The average spread between the past month’s peak and trough across the 10 largest digital assets has only been around 23%, according to data compiled by Bespoke Investment Group. Since late 2017, no other period has seen this level of serenity. Since the start of 2020, in fact, the average reading was in a range of over 80%, the researcher said…
The fact that Bitcoin’s been less volatile recently has caught a lot of attention considering its reputation for fluctuating wildly. Still, some have warned that its calming might not be great news: the development coinciding with lower volumes might mean it crashes faster in the event of a downturn.
Viewed from the lens of investors, the lack of volatility could also be seen as a negative. A lot of individual traders have been in the space precisely because of its wild nature, says Acheson. While warnings abound about staying away from such volatile markets, their turbulence is also a reason for many to dive in, especially considering that some platforms “offer eye-watering leverage,” she wrote in a note.
“Without traders, we wouldn’t have liquid markets. And without liquid markets, we would not have institutional interest,” she said. “And without institutional interest, our industry would still be insignificant, poorly funded, less innovative and more vulnerable to regulatory interference.”…”
https://finance.yahoo.com/news/lower-volatility-confounds-crypto-traders-133655409.html
Its very possible that only people who refuse to sell are left in the market. That may be the reason it has stabilized. I know there’s no way on Earth I’m selling my crypto. That’s fore sure. Cryptocurrency is the future. Not all of them will survive so its a gamble but there’s going to be some major winners on the other side of this crypto winter.
Also see the bold? I didn’t enter cryptocurrency because it would be stable like gold. All my readers who have been here for a while know I like volatility in markets. The more the better. I love it actually.
To be honest that’s why I haven’t been invested in penny stocks as much as when I started. They are not as volatile as 2 years ago. The vast majority of the time they only drop now. There’s less upside. I’d have to short sell at this point if I got back into the market. I will be short selling in the future but not at this time.
Anyway only the foolish sold out of their crypto position. That’s my take on the situation.