Bitcoin Decline- Is Bitcoin’s Low Volatility a Sign of Upcoming Growth?
Bitcoin Decline– Bitcoin (BTC) is being touted as a “generational opportunity” by executives at Bitwise Asset Management, amid growing economic and political volatility. Jeff Park, Bitwise’s head of alpha strategies, highlighted global instability, including the potential overhaul of global trade policies under the Trump administration, and growing deglobalization trends. In a Feb. 16 post on X, Park noted that the world is “literally on the brink of max chaos,” citing the House Republicans’ proposed budget plan that could increase the U.S. debt limit by $4 trillion and escalate the threat of reciprocal tariffs by former President Donald Trump.
Park also flagged “max retardation” in markets, which he believes signals a major shift on the horizon. He pointed to “unprecedented tax cuts” of up to $4.5 trillion and potential yield curve control (YCC) by central banks, which could attempt to keep long-term interest rates low in a bid to stimulate borrowing and investment. These factors, he argued, would make Bitcoin an increasingly attractive asset.
In a separate Feb. 16 post, Bitwise CEO Hunter Horsley also expressed confidence in Bitcoin’s mainstream adoption, saying, “People are wildly underestimating the massive leaps Bitcoin is going to take into the mainstream this year.” Park also noted Bitcoin’s current implied volatility (IV) percentile at 12.3, signaling a “generational opportunity” for investors.
Bitcoin’s Current Market Performance
Bitcoin is currently trading just over $96,000, down more than 1.5% in the past 24 hours, according to CoinGecko. The cryptocurrency has fluctuated between $90,000 to $100,000 this year, reaching a peak of $108,786 last month following Trump’s inauguration. The Crypto Fear & Greed Index shows a “Neutral” market sentiment with a score of 51 out of 100, reflecting a shift from last week’s “Fear” level but lower than the more positive sentiment seen in January.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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