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- Most of the top cryptocurrencies exhibited an uncharacteristic lack of volatility in the previous month.
- The bullish late-month trading action in Bitcoin and Ethereum driven in part by a short clinch in the market.
Proceeding a month that was mostly lacking of wild market action,
Crypto finished off October slightly higher, leading to what may be an action-packed November.
Moreover, in the end of October 2022, a pullback in the U.S. Treasury bonds have helped Bitcoin and the rest of the cryptocurrencies rally ahead of a likely Federal Reserve rate hike in the beginning of this month.
However, the crypto assets over the last couple of years have gained prominent popularity as a niche asset class. The token has the potential to deliver massive returns despite ultra-high volatility.
Crypto Stocks Performance
The most-traded cryptocurrency, Bitcoin prices, spent most of September and October trading in a narrow-range of between $19,000 and $20,000. Its 20-day rolling volatility plunged. It could be an optimistic vision for crypto investors.
Anthony Rousseau, Senior Director of Product Strategy for crypto at TradeStation shared his optimistic vision as “History shows Bitcoin’s depressed volatility could indicate it is closer to a bottom than the equity markets. Right now, we’re seeing Bitcoin’s volatility beginning to slow as its range shrinks weekly, like previous bear markets.”
Dessislava Aubert, Research Analyst at cryptocurrency market data provider, Kaiko, remarks as “To exacerbate issues, mining companies are turning to native crypto lenders for liquidity despite higher interest rates and stringent collateral requirements.”
She also pointed out that “The move towards consolidation of the sector will likely continue as market conditions remain challenging.”
A Bitcoin Mining Analyst, Jaran Melleurd, also expressed that “Bitcoin miners need extremely cheap energy to be profitable.”
Mr. Melleurd recently shared a tweet in which he added about Norway’s oil production that is expected to rise by 15% in 2023 as the Government’s Draft budget showed on October 6, 2022.
Additionally, Bitcoin, Ethereum and other cryptos erupted to the upside in the final week of October 2022. Bitcoin noted the surge to above $20,900, while Ethereum spiked to above $1,580. Both the currencies were on track to finish the month up 6% and 20%. But, both the cryptocurrencies remain down more than 57% year to date.
Overall, the crypto market witnessed several notable moves among institutional players last month. On the other hand, the Securities and Exchange Commission (SEC) seems aggressive with crypto as the SEC Chair, Gary Gensler, debates the vast majority of cryptocurrencies are securities.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
