According to CNBC’s report, Bernstein The latest volatility in the crypto market has emerged in an analysis published Monday by “return to average” reported to have been triggered.
Bernstein Explained the Recent Rise in Bitcoin Price with the Concept of “Return to Average”
bitcoin Shortly before $23,000 managed to regain its level and started the new year with a big bang.
A return to mean in cryptocurrencies is a concept that refers to the tendency to “return” to the mean after large fluctuations in price or volume have risen.
It is often used by traders who want to profit from temporary market disruptions in crowded markets such as cryptocurrencies. According to some market analysts, the recent increases in Bitcoin (BTC) prices can partly be attributed to this phenomenon.
While it is impossible to predict with certainty when or how much an asset’s price will bounce back, as all assets are subject to a variety of unpredictable factors, Bernstein said that the current rise in BTC prices is back in BTC, based on investors’ anticipation of further price increases after several months of relatively low prices. He believes it is because of his purchase.
The report noted that despite a few issues such as crypto lender Genesis filing for bankruptcy and the explosion of the FTX exchange, any potential pressure on the liquid crypto markets has vanished as most of the anticipated selling pressure revolves around illiquid private crypto investments.
Bernstein underlined that Bitcoin has never experienced negative returns for two consecutive years since its inception, and said to be cautious in calls for bearish in current market conditions.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!