Cryptocurrency market could be more volatile
A report prepared by Bitfinex assured that the volatile phenomenon would occur in the short term
Bitfinex’s Alpha report has recently released a new edition, in which it analyzes a group of indicators that suggest a possible increase in volatility in the cryptocurrency market in the short term.
According to the report, the market is registering increased volatility after the decline of Bitcoin and Ether in the first weekend of March. Market capitalization fell below the psychological $1 trillion mark. Prior to January 25 of this year, the cryptocurrency market capitalization had stayed above $1 trillion for 225 days.
The report mentions that in the last ten days, both realized, and implied volatility have increased slightly, indicating that short-term inconstancy will increase, and the market will fluctuate in the coming week.
Bitfinex Alpha warns that derivatives control the price, as evidenced by the liquidation of long positions in the cryptocurrency futures market, worth more than $210 million, which occurred on March 3, the highest amount in almost one month. The report also suggests that trends in the cash market and on-chain wallet balances remain good picks for bulls, as on-chain metrics remain the same while derivatives dominate the price.
(Reference image source: file)
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