Bitcoin ($BTC) Traders are Preparing for a ‘Big move’, Says Popular Analystadmin
A popular cryptocurrency analyst has said that Bitcoin ($BTC) traders are preparing for a “big move” on the market, at a time in which the flagship cryptocurrency’s volatility has dropped below that of the stock market’s benchmark index, the S&P 500.
In a tweet shared with their over 140,000 followers on the microblogging platform, popular crypto analyst Satoshi Stacker noted that open interest (OI), which represents the total number of outstanding derivatives contracts that haven’t been settled, is sitting close to its highest level.
Open interest provides an accurate picture of the market’s liquidity and interest, as it identifies where money flows. Bitcoin’s nearly record-high open interest comes at a time in which Bitcoin’s volatility fell below that of the Nasdaq and S&P500 indices for the first time since 2020.
As CryptoGlobe reported, experts have warned that Bitcoin’s lower volatility could be a problem when paired with lower trading volumes, as it could lead to a significant sell-off in the market if things turn bearish.
CryptoCompare’s Bitcoin Volatility Index (BVIN), which is an “ implied volatility index that also represents the fair value of a bitcoin variance swap.,” has meanwhile dropped from around 100 in September to now stand at 65.5
Ark Investment Management analyst Yassine Elmandjr has said that “low volatility in Bitcoin might not necessarily be a good thing, especially if it’s on low volume.” Per the analyst, in late 2018 BTC was trading at $6,000, low volume help the coin dump to $3,000.
Cryptocurrency prices plunged this year over the Federal Reserve and other central banks raising interest rates in a bid to tame inflation, which pushed investors away from risk assets. The drop is believed to have made institutions leading players in the space, which could help explain the volatility drop.
Various analysts are nevertheless bullish on BTC. As CryptoGlobe reported, a panel of 55 cryptocurrency experts has revealed that they believe the price of the flagship cryptocurrency Bitcoin could surge to hit $270,000 by 2030, while predictions for the end of this year still see the cryptocurrency’s price rising.
The expert panel predicted that BTC would trade at around $21,000 by the end of this year, below their previous prediction of $25,400 made in July of this year. In April 2022, the portal’s expert panel was predicting the flagship cryptocurrency would end the year at around $65,000 per coin.
Ark Investment Management’s Elmandjra has defended the firm’s prediction that the price of the flagship cryptocurrency BTC will top $1 million in the future.
Elmandjra defended a price prediction made by the fund manager of Ark’s flagship innovation-themed exchange-traded funds (ETFs), Cathie Wood, that BTC would top $1 million by 2030.
Featured Image via Unsplash