Crypto Stays Calm Amid High Volatility: Experts Point to Resilience

• Crypto experienced a small dip in early February, but was quickly stabilized due to strong sentiment.
• Volatility across the board for stocks is high compared to crypto’s marginal volatility.
• In 2022, bitcoin lost over 70% of its value and the space lost more than $2 trillion in valuation.

Crypto Experiences Sudden Lack of Volatility

In early February, crypto experienced a small dip after weeks of its main assets such as bitcoin riding the bull wave and increasing their prices. On or around February 5th, the crypto space fell by a little over two percent and wound up stuck at just over $1 trillion. Despite this, analysts point out that right now volatility across the board for things like stocks is rather high while crypto is experiencing only marginal volatility – suggesting sentiment is still strong enough to keep the industry stable.

The Worst Year on Record for Bitcoin

In 2022, bitcoin had risen to an all-time high of about $68,000 per unit in November of 2021 but then went on to lose more than 70 percent of its value and had fallen into the mid-$16K range by the time 2022 was on its way out. The space was marred by heavy speculation, bankruptcies, and bad behavior from players like FTX which resulted in it losing more than $2 trillion in valuation in just under 12 months.

Future Outlook For Crypto

Edward Moya – senior analyst at OANDA – suggests that yields are likely to continue rising which could mean that bitcoin might struggle taking out [the] $25,000 level over the short-term; however Tech Dev – an analyst known for sharing his crypto thoughts on Twitter – mentioned that when liquidity flows bitcoin moves so there may be some hope yet for wider adoption and higher values ahead.

Speculation & Good Behavior

Analysts have been quick to suggest that although there has been heavy speculation within cryptospace during times of bullishness (such as during November 2021) it’s important for players within this arena to remain mindful of their actions – both good & bad – as they may have a long-term impact on how cryptocurrencies are viewed by regulators & investors alike.


Cryptocurrency has come a long way since its inception but it’s clear that much work still needs to be done before it can reach mainstream adoption and acceptance levels similar to those enjoyed by traditional investment vehicles such as stocks & bonds. By continuing to exercise caution & remaining aware of potential risks associated with investing too heavily into any one asset class (or asset type) investors should be able to reduce their exposure while still reaping rewards from what could prove to be an incredibly profitable industry once regulatory hurdles are cleared away completely.