The world is upside down. Is bitcoin stable now? Or is everything suddenly extremely unstable? As the planet descends into chaos, bitcoin remains in a strange range that is not characteristic of an asset and does not expire. This is what it sounds like and what the statistics say. In Latest ARK Invest’s Bitcoin Monthly In the report, he put it this way, “Bitcoin finds itself in a tug of war between oversold on-chain conditions and a chaotic macro environment.”
However, what about numbers? The data supports the thesis, “For the third consecutive month, bitcoin continues to trade between support at its investor cost base ($18,814) and resistance at the 200-week moving average ($23,460). Three months in that range seems too much. something’s got to give. However, this is what everyone has been thinking for the past few months and we are still here.
Dollar Milkshake Theory
Bitcoin has been less volatile than usual, sure, but the main factor here is that the whole world is falling to pieces. Every company is in the red, especially the technical ones, and all the world’s currencies except the dollar fell off a cliff. Are we watching the “dollar milkshake theory” play out before our eyes? It certainly seems so. Global central banks are printing bills like there’s no tomorrow, and there’s extra liquidity to take on a stronger currency.
According to Professional Investor Darren Winter“The dollar milkshake theory views central bank liquidity as a milkshake and when the Fed’s policy transitions to easing tightening they exchange a metaphorical syringe for a large straw sucking liquidity from global markets.” are.” If that’s what we’re seeing, what happens next? Back on Bitcoin Monthly, ARK says:
“As macro uncertainty and USD strength has increased, FX pairs have been negatively impacted while Bitcoin has remained relatively stable. Bitcoin’s 30-day realized volatility is nearly equal to GBP and EUR for the first time since October 2016”
BTC price chart for 11/07/2022 on Bitstamp | Source: BTC/USD on TradingView.com
bitcoin vs. Other properties in October
The macro-environment has been so bad lately, that there is a perception that bitcoin is doing better than stocks. The fact is that, for the first time since 2020, “Bitcoin’s 30-day volatility is on par with the Nasdaq and S&P 500.” And, we know that past performance doesn’t guarantee future results, but “the last time bitcoin’s volatility declined and equity indices equated to rising volatility in late 2018 and early 2019, the BTC price rose sharply.” It was an earlier move.”
However, let’s not kid ourselves, bitcoin is not doing well. The thing is, there’s not much going on there. Especially in the tech sector. “The price drop from all-time highs on Meta (-75.87%) and Netflix (76.38) has outpaced Bitcoin (-74.46%). To a lesser extent, Amazon is also dealing with BTC’s “normal” volatility (-48.05%). suggests an improvement in the ratio.”
According to The Bitcoin Monthly, the situation “suggests the gravity of the macroeconomic environment and the resilience of bitcoin against it.”
However, the only constant is change. Bitcoin’s stability suggests a violent breakout, either up or down. The whole world can’t stay red forever, someone or the other has to rise above the crowd and show everyone how it happened. We’ve been waiting for a resolution that seems like ages, and we’ll probably have to wait some more. However there will be movement. When we least expect it, probably.
Featured Image: Bitcoin 3D logo from The Bitcoin Monthly | Charts by TradingView