(One)
The currency market during the Spring Festival is generally quiet.
Regardless of whether it is inside or outside the circle, no matter what the thoughts and motivations are, everyone's eyes are focused on the psychological price of Bitcoin breaking through the $ 50,000.
Although BTC briefly broke the $ 50,000 price line during the Asian trading session on February 16, it has fallen back down and is more consolidated around the $ 49,000 price line.
The king of currencies is like this, and Ethereum is cutting corners around 1,800 dollars, and it doesn't draw a short-term 2,000 dollar market psychology line.
For other currencies, there are storms and waterfalls that destroy, but don't deter any signs of the market from appearing.
(two)
Looking back, Bitcoin and the volatility of digital currencies under its influence were common, including during the Chinese Spring Festival or Christmas holidays in the West when hundreds of millions of people celebrate. When the bull market peaked in 2017, cryptocurrencies in particular experienced enormous fluctuations.
However, after experiencing continuous breakouts of $ 30,000 and $ 40,000 in early 2021, Bitcoin's current highs are starting to show steady ups and downs.
Maybe the new normal has arrived!
(three)
What's behind the emerging market?
A difference from the past: Multi-billion dollar institutions like Tesla are investing in these alternative assets and bringing them into the mainstream.
The market began to respond to increased demand from large investors such as Tesla, MasterCard and the Bank of New York Mellon. Morgan Stanley's investment department is considering whether to bet on Bitcoin, and top brand hedge fund managers like Paul Tudor Jones are helping Bitcoin legalize.
Bitcoin seems to be a company at a cheerful pace. This illustrates the decline in the volatility of Bitcoin and the value of Bitcoin as an asset class.
(four)
Institutional investors around the world are paying more attention to Bitcoin and investing in Bitcoin than ever before. But on Wall Street, the volatility of this digital currency has sparked different opinions.
Wall Street is no stranger to capital market volatility, and market volatility can be traced back to the early days of foreign exchange transactions. Of course, the volatility of traditional asset classes is clearly insignificant compared to the ups and downs experienced by crypto assets.
Although the cryptocurrency market continues to be volatile, Bitcoin's volatility is much less than it was when the cryptocurrency bull market peaked in 2017.
(Fives)
Recently, Bitcoin's volatility appears to have decreased, and more opinions include:
(1) Bitcoin has become a global consensus asset, so it is unlikely to be affected by the financial and economic conditions of any country.
(2) So far, Covid-19 which is still a pandemic has affected financial markets around the world and caused many investors to use Bitcoin as a way to protect their assets. This is not only a factor in its recent volatility, but also one of the reasons why corporate and institutional investment will eventually lead to a reduction in this volatility.
(3) With increasing demand, cryptocurrency volatility will inevitably decrease, as important participants with real market influence have expressed their support with real money.
(4) As Bitcoin enters the mainstream, the uncertainty surrounding this asset class will decrease, and its market volatility will also decrease. Although the ambiguity surrounding Bitcoin can make the government regulatory process slow and difficult, technology tycoons, hedge fund managers, and global companies are changing their attitudes, and traditional finance professionals are gradually accepting Bitcoin and digital tokens. The global adoption of blockchain is accelerating.
(six)
Saying that Bitcoin's volatility is decreasing doesn't mean Bitcoin can't return to more than $ 50,000 in the short term.
In a tweet on February 16, CryptoQuant CEO Ki Young-Ju revealed a new finding for the first time: "Stablecoin reserves on exchanges continue to increase."
Obviously, the long and short sides are deploying troops and preparing for war. The big, decisive battle around the Bitcoin price is 50,000 dollars, which is imminent.
Today is the surest investment period in the history of Bitcoin and cryptocurrency.
(Images in this article are from public networks)