YEREVAN (CoinChapter.com) — The cryptocurrency market may be on the road to recovery amid reduced volatility in the price of the world’s leading crypto. According to a recent report by CNBC, Bitcoin (BTC) trading has become boring. The price of BTC has hovered around the $20,000 mark despite damning predictions that it will drop to as low as $14,000.
As the report argues, the reduction in volatility comes as good news for the market. It signifies that the prices have “bottomed out” amid an extended crypto winter that began last November.
Crypto prices have fallen sharply after Bitcoin’s impressive rally last year that saw its price chart to an all-time high of $68,789.
In economic terms, prices bottoming out is an indication that the lowest point has been reached and things are likely to improve henceforth.
Meanwhile, major stocks have also crashed along with Bitcoin (BTC), thanks partially to the repeated interest rate hikes by the US Federal Reserve.
As more institutional investors take interest in the cryptocurrency market, the correlation between BTC and the stock market has become more apparent.
However, as October came to a close, Bitcoin’s 20-day rolling volatility fell below that of the Nasdaq and S&P 500 indexes for the first time since 2020, CNBC said quoting data from crypto research firm Kaiko.
Recommended: FOMC Meeting To Deliver Another 75 Bps Interest Rate Hike – Will Bitcoin Stumble?
Bitcoin-led crypto market on the road to recovery?
Between October 31, 2021, and October 31, 2022, the price of Bitcoin (BTC) has fallen by over 66%. It currently trades for $20,424, according to CoinMarketCap.
BTC took a drubbing earlier this year as the crash of the TerraLuna ecosystem sent the markets tumbling. Crypto lending platform Celsius Network also paused all withdrawals in June, sending shockwaves among the crypto community.
Major crypto firms also went bankrupt amid the rocky trading environment. Three Arrows Capital (3AC), one of the largest bitcoin hedge-fund, filed for Chapter 15 bankruptcy on July 1st. Days later, crypto lender Voyager Digital filed for Chapter 11 bankruptcy, thanks to its exposure to 3AC.
However, despite the crash, market insiders believe Bitcoin (BTC) and the cryptocurrency market at large will recover.
According to Nick Saporano, CEO of the decentralized payment platform provider, Divi Labs, the Crypto Winter still has some way to go before it thaws.
“The global economy needs to bottom out and “reset.” Until people gain confidence that the bloodshed has ended, we won’t see a shift in market sentiment or activity. A certain price won’t signal the bottom, a confirmed trend reversal will. Having said that, I wouldn’t be surprised to see commodities like Bitcoin rebound before most other assets,”
Saporano told CoinChapter.
With Bitcoin (BTC) volatility now falling, optimism has returned to the market. However, time will show if that will translate into increased crypto trading.
The post Can Bitcoin (BTC) Lead the Crypto Market Down the Road To Recovery? appeared first on CoinChapter.