Arcane Research - Ahead of the Curve Market Update (by Bendik Schei and Vetie Lunde, January 2023)

 

Arcane Research looks ahead to a year that may be categorized by lower volatility, which in Bitcoin terms has recently reached lows not seen since July 2020.

Abstract:

“The crypto market has stagnated over the last two weeks during the Christmas holidays. BTC and ETH have experienced slight declines in the previous seven days but trade in a very stable price range. The current stale price action is reflected in BTC’s volatility, which has slumbered toward rare lows, evident by the 7-day volatility in BTC, reaching lows not seen since July 2020. 

The dwindling volatility is accompanied by spot volumes drying up and the futures market reigning in a flat regime. The entire market is generally stabilizing, accompanied by apathetic market participation. Closed U.S. markets are likely the core reason behind the dull price action of late, but it’s also been exaggerated by a general exodus of active retail participation and few important news catalysts. As we enter the year, potential catalysts are approaching, with the most notable crypto-specific market-moving event being related to the current DCG situation, which could materialize into an involuntary Chapter 11 petition..”

3 January 2023

Arcane Research – Ahead of the Curve Market update (by Bendik Schei and Vetie Lunde, January 2023)