Amid ongoing challenges in the crypto market, bitcoin has settled into a new volatile range. Let's explore the reasons and implications of this state.
Bitcoin's New Volatile Range
On March 10, bitcoin fell below $80,000 and reached $76,800, before rising back to $81,000. This triggered significant market losses, with liquidations exceeding $950 million for both short and long positions.
Market Reaction and News Impact
Bitfinex analysts expected a temporary upside move toward the previous range lows near $90,000 after bitcoin briefly fell below $80,000 in February. However, as the Crypto Summit at the White House approached, volatility increased. The executive order establishing the bitcoin reserve initially lifted prices but only temporarily.
Chances for Market Stabilization
Despite bitcoin's negative price action, the leading cryptocurrency has remained stable relative to altcoins. Volatility in the bitcoin options market reached 80% over some timeframes, indicating that many investors were forced to exit positions below their cost. However, such events often precede market stabilization.
Current bitcoin volatility might be the beginning of a new stabilization phase as strong hands start accumulating, while weak hands exit the market.
