A prominent cryptocurrency analyst has said that Bitcoin ($BTC) traders are bracing for a “big move” in the market at a time when the flagship cryptocurrency’s volatility has fallen below the benchmark. Stock market benchmark, the S&P 500. In a tweet shared with his more than 140,000 followers on the microblogging platform, famous crypto analyst Satoshi Stacker noted that the open interest (OI) represents the total number of derivative contracts outstanding, of which some were not liquidated, is close to its highest level.
The open interest provides an accurate picture of market liquidity and interest by identifying where money is going. Bitcoin’s near-record genuine interest comes when bitcoin’s volatility fell below that of the Nasdaq and S&P 500 indices for the first time. Time since 2020. As CryptoGlobe reported, experts warned that Bitcoin’s lower volatility combined with lower trading volumes could pose a problem, as it could lead to a market sell-off if things turn bearish.
Meanwhile, CryptoCompare’s Bitcoin Volatility Index (BVIN), an “implicit volatility index that also represents the fair value of a Bitcoin variations exchange,” has fallen to 65 now from around 100 in September. Yassine Elmandjr, an analyst at Ark Investment Management, said that “low volatility in bitcoin is not necessarily a good thing, especially when volume is low.”
According to the analyst, BTC traded at $6,000 in late 2018, but low volume helped the coin capsize to $3,000. Cryptocurrency prices have plummeted this year as the Federal Reserve and other central banks hiked interest rates to curb inflation and discourage investors from risky assets. The drop is believed to have made institutions the leading players in this space, which may help explain the decline in volatility.
However, several analysts are bullish on BTC. As CryptoGlobe reported, a panel of 55 cryptocurrency experts announced that they believe the price of the flagship cryptocurrency, Bitcoin, could surge as high as $270,000 by 2030, while predictions for the end of this year are still ongoing. Watch the cryptocurrency price rise. The panel of experts forecasts that BTC would trade at around $21,000 by the end of this year, compared to its previous forecast of $25,400 made in July of this year. In April 2022, the portal’s panel of experts predicted that the flagship cryptocurrency would end the year at around $65,000 per coin.
Elmandjra of Ark Investment Management has defended the company’s prediction that the price of its flagship cryptocurrency, BTC, will surpass $1 million in the future. Cathie Wood predicted that BTC would reach $1 million in 2030.