Continuing with 2022’s pattern, there is a lack of favorable excitement in the crypto market. While Bitcoin (BTC) and altcoins have remained stagnant to start 2023, there are a few reasons why volatility could spike in January.
market involvement will continue in the early part of this year. BTC volume with and without Binance. Source: Arcane Research If DCG were to take the Reg M path and area market volume remains low, a correction in crypto prices might sharpen in the short-term. The upcoming economic calendar mean possible
Thurs. Jan. 12: US CPI Inflation Rate Report Fri. Jan. 13: United States banks start Q4 2022 revenues reports If the numbers are listed below expectations or anything out of
- area volumes are coupled with BTC volatility reaching a 2.5-year low. According to Lunde, the
- low volatility duration will not last too long. Lunde stated,”
- These low volatility periods rarely last for
long, and volatility compression periods have actually previously tended to be followed by sharp relocations
- , even in stagnant markets.” BTC 7 and 30-day volatility. Source: Arcane Research Some analysts think that the Jan. 12 United State Consumer Price Index(CPI )will show a spike in inflation.
If this is the
case, the Federal Reserve might continue to raise rate of interest which has actually caused crypto’s market cap to decline in the past. With the possibility of more rates of interest walkings combined with the present market belief
, potential DCG insolvency and reduced market liquidity, the crypto market might respond with another drop to the downside.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Pandoraland.
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