Analysts believe that the crypto market is entering a phase of calm

The digital currency market is waiting for a period of calm if you consider the internet activity. According to information from Glassnode’s weekly report, the realized volatility of the main crypto coin in annual terms was the lowest since October this year.

These metrics are similar to the low levels of volatility that were recorded during the previous cycle at the end of 2018. Experts also noted that futures volumes fell to multi-year lows.

“This shows the huge impact of liquidity squeezes, widespread deleveraging, and the deterioration of many credit and shopping centers in the space,” the report says.

The collapse of FTX was a prerequisite for falling interest in the futures markets. Leverage ratios have also come down, which is usually a positive sign for the crypto industry, as a significant proportion of such positions have been liquidated. As a result, real investors and hodlers and investors, and not speculators, should remain on the market.

“Investors seem to be stepping in, increasing the volume of coins at each stage of the price decline,” Glassnode said.

According to CoinMarketCap, the price of bitcoin has increased by 3.34% to $17,789 over the past 24 hours, while the value of ethereum has increased by 3.61% to $1321. Solana rose 4% to $13.87.

At the same time, experts from Santiment believe that the upcoming Fed decision on a new discount rate, and information about business activity this week can affect the behavior of bitcoin. Earlier, the S&P 500 index went beyond its usual trajectory, which may not be a good sign for the main crypto coin. In this regard, analysts admit that bitcoin may stagnate or fall in price.

Do you agree with this?