The cryptocurrency market shows a study in contrasting conditions – pristine calm versus volatile storms. Recently, Bitcoin traders have been crossing their fingers for the BTC price to maintain at $27K while pushing aside a shaky U.S. dollar. Undeniably, cryptocurrency had demonstrated relative steadiness compared to the dollar index that particular day, with Bitcoin comparison almost mirroring a stablecoin. This was reflected by the Bitcoin’s connectivity to the $27,500 level during the Wall Street’s opening last October 4.
However, amid the tranquillity of Bitcoin price behaviour, the U.S. dollar buckled and rattled. The cryptocurrency was once again in pursuit of direction after a flurry of hectic trading at the beginning of the week. Expert observers have demarcated the essential price points wherein the crypto trader, Skew, underscored the importance of reclaiming the price level directed towards $27,600.
Despite the rather tame demeanor of Bitcoin, legacy markets told a different story altogether – its stability shines against the backdrop of a tempestuous legacy market. Factors pushing the agitated condition in legacy markets include the unprecedented surge of U.S. 30-year bond yields to 16-year highs – a development that raised murmurings of a potential meltdown looming from wary commentators.
A further variable to consider is that the strength of the U.S. dollar can yield its own turbulence. Recall that before the opening of Wall Street, the U.S. dollar index took a considerable dip from a steadiness not witnessed since Q4 of the preceding year. While this goes on, the BTC/USD continued to shrug off such sudden dollar index movements.
It appears that the lingering question of how macro effects would proceed is accountable for the noticeable absence of substantial BTC trading volume as opined by Skew. Many might be succumbing to monetary liquidity amid market turmoil.
The unique market landscape presents an intriguing study. Bitcoins are riding the waves elegantly while the more established market counterparts like the U.S. dollar and the bond market, are being thrown into a sea of turbulence. One can’t help but wonder at this point – will Bitcoin continue to sail smooth even as the legacy markets are capsized by volatility? Only time will tell.
Whatever the case, it’s certain that crypto market enthusiasts and skeptics alike will keep a vigil eye on the tale of these two vastly different market realms, questioning the benefits of investing in more traditional markets over emerging ones like Bitcoin.
Source: Cointelegraph
