Cryptocurrency traders are preparing for a volatile period in the Market following bitcoin’s sudden plunge. On-chain data analyzed by Bitfinex showed a surge and flatline in volatility metrics, indicating that traders are adjusting their strategies for increased volatility. Last week, bitcoin’s decline towards $25,000 led to over $1 billion in futures liquidations. This came after a period of relative stability, with traders hoping for a catalyst to trigger a significant market move. The sudden slump resulted in a major wipeout of open interest, with around $3 billion lost within a few hours. The recent crash has led to speculation about the specific reason behind the price drop, but on-chain data suggests that wilder price swings can be expected in the coming weeks. The implied volatility metric has surged to 40%, indicating heightened expectations for price fluctuations. The historical volatility indicator has remained stable, suggesting that traders have adjusted their strategies to accommodate the increased volatility. This anticipation of turbulent market conditions can be attributed to factors such as macroeconomic shifts and regulatory changes. Overall, the crypto market is bracing itself for choppy waters in the near future..
#Crypto #Traders #Brace #Choppy #Waters #Bitcoins #Plunge #25.3K #Bitfinex #Report
#Crypto #Traders #Brace #Choppy #Waters #Bitcoins #Plunge #25.3K #Bitfinex #Report
