Bitcoin returns to the $43,000 level

Published On: January 21, 2022Categories: Alternative Investments1.3 min read

Volatility in the crypto market has been declining over the past month, especially as bitcoin continues to trade in a tight range between $40,000 and $45,000

Bitcoin returned above $43,000 on Thursday and was up about 3%, indicating renewed buying interest after a relatively quiet week. Despite the recent decline in trading activity, analysts are still monitoring macroeconomic and regulatory risks that could trigger a rise in volatility.

A long term trend will soon be tested, however, potentially determining the longer term trajectory of bitcoin (BTC) and the broader crypto market.

Popular cryptocurrency analyst and commentator Will Clemente predicted it will be an ‘interesting week’ for bitcoin, as a long term descending trend is tested by a short term ascending pattern.

On Thursday, Russia’s central bank suggested that lawmakers need to implement regulations to effectively ban domestic crypto-related activities. The bank made it clear, however, that it is not suggesting banning ownership of crypto by private citizens. Instead, the proposal targets Russian institutional investors, financial infrastructure providers and other organizations that could facilitate crypto transactions.

The proposal comes after Binance, a crypto exchange, announced earlier this month that it hired former government officials from Russia and Ukraine to help develop its business in those countries.

Some traders appeared to be unfazed by Russia’s proposed crypto ban, evidenced by the price gain on Thursday.

However, some analysts remain cautious despite the stabilization in bitcoin’s price.

Volatility in the crypto market has been declining over the past month, especially as bitcoin continues to trade in a tight range between $40,000 and $45,000.

QCP Capital, a Singapore-based crypto trading firm, described volatility conditions as ‘frustrating’ in a Telegram announcement. There is clearly some downside nervousness with risk reversals back to very negative levels (puts more expensive than calls), QCP wrote.

About the Author: Jonathan Adams

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