It seems like the bears have taken control of the crypto markets as Bitcoin, the king of cryptocurrencies, fails to breach the crucial $50,000 level. It tumbled as much as 8.40% yesterday to $45,773. The research note by CompareBroker shows that December is actually a month when you do see higher volatility for the Bitcoin price. According to their research, in December, BTC’s volatility has been up nearly 86% for the last 10 years hence it is kind of normal if we continue to see bigger whipsaws for the BTC price during this month.
As for the current BTC’s price action, the drop in Bitcoin prices on Monday pushed the digital coin below its 200 days average which is negative news for crypto enthusiasts. Similarly, Bloomberg Galaxy Crypto Index dropped about 7.40% which shows that sentiment in broader crypto markets has taken a hit.
The current price movement of cryptocurrencies refutes the premise that the blockchain ecosystem has fully matured, resulting in less severe market volatility in the future. This, however, does not appear to be the case. Similarly, some investors perceive digital currencies to be an inflation hedge, and rising consumer prices helped to strengthen crypto markets last week to some extent. Crypto markets, on the other hand, were unable to maintain the surge.
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