Over past one-week Bitcoin has again been in the mood of its own and has entered the volatile zone. While the up move has made the bulls happy, neither fundamentally nor technically there was any clear reason for this price climb. As these spikes make the street happy, SFOX the prime crypto dealer draws a line of caution as it recent report states such moves just add to the volatility of Bitcoin.
The volatility in March was subtle but expect April to be more vigorous
SFOX, the prime crypto dealer recently released its monthly volatility report where captured critical data from exchanges around the globe for March 2019. Providing a comprehensive analysis of the volatility of leading crypto coins the report concluded that
- The SFOX Multi-Factor Market Index shows a mildly bullish trend entering April 2019
- LTC, BCH, and ETC all showed noteworthy volatility movements that weren’t obviously related to BTC, suggesting that the industry at large may be growing beyond BTC.
- March highlighted the sustained focus on blockchain and crypto development in an increasingly low-volatility environment.
Explaining the March sentiment and volatility, the report stated
“While some outlets such as The Wall Street Journal expressed bearish sentiment about the state of the market, several major coins showed significant growth in transaction volume, and companies such as Visa and Facebook expressed sustained interest in crypto and blockchain technologies. The data suggest that growth is still happening where it counts, as institutions continue to be interested in crypto and the sector’s infrastructure continues to mature”
The report further goes on to give a complete analysis of how the coins performed in March 2019, it does give an insight into how the month of April 2019 could turn out to be. The report believes conferences, futures expirations, and general uncertainty would potentially impact volatility in April 2019. The report acknowledges that the first few days of April have already taken the price of Bitcoin up by 25 %. Comparing it back to the 2017 rally, the report states that
“the sharp movement in BTC’s price without a clear cause could potentially lead to greater market uncertainty, which, in theory, could drive volatility upwards.”
The report states that there a four major conferences in the month of April that can drive the prices based on their outcomes. This includes New York High Tech & Innovation Family Office Meeting (April 10th), Palm Beach Global Finance Form (April 10th) Paris Blockchain Week (April 13th-19th) Blockchain Expo Global, London (April 25th-26th).
The Other drive of prices and volatility in April would be around April 26 which is the last day for CME Bitcoin futures. Crypto volatility typically moves around the time of futures expirations. With CBOE backing off from BTC futures, for the time being, the date of CME’s futures expiration may potentially impact volatility more than usual.
The report has clearly given out events that could impact the volatility and price of cryptos in April 2019. These are good enough signals for one to beware of what could lead to sudden declines or rise in the coming month.
What is your price target for BTC in April 2019? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.