Bitcoin (BTC) finally felt a surge in volatility today, December 27, after Wall Street opened the last trading week of the year.
Bitcoin Feels New Volatility
Data from Cointelegraph Markets Pro and TradingView shows that the price of bitcoin fell 1% just in time for the open.
So, although the downturn was only $150, it was noticeable as Bitcoin saw no volatility over the past few days.
The decline in the market-leading cryptocurrency is accompanied by a 0.6% decline in the S&P 500, while the Nasdaq Composite is down 1.4%.
The US Dollar Index (DXY) also reacted to these developments and in turn was able to offset recent losses since December 25th.
Given that BTC price movement has been relatively subdued overall, experts are looking to other catalysts, including Binance Coin (BNB) and ongoing concerns about market-leading crypto exchange Binance.
“The biggest risk to the crypto market is BNB,” says analyst Matthew Hyland Remarks. To which he adds:
“It currently has a market capitalization of $38.4 billion which could drop more than $20 billion if the existing support does not hold. How much of this is taken in exchange to inflate other cryptocurrencies? A BNB crash would affect everyone.
Nonetheless, BNB is trading above $240 at press time. This red line must be maintained to avoid risking further declines.
Outside of the crypto markets, the news that China is lifting the mandatory quarantine for travelers on January 8 has not had a boosting effect.
Miners divide minds
Meanwhile, another problem child are bitcoin miners, although opinions differ as to how they really are.
Charles Edwards, CEO of Capriole Asset Management, cautions against the much-quoted hash tape metric.
“This is by far the most violent capitulation by bitcoin miners since 2016, and possibly in all time,” said expert Alarm. Beats. To which he adds:
“Hash tapes reveal lowest Bitcoin hashrate of 2022 as more miners go insolvent due to cost pressure and bankruptcy filing.”
As Cointelegraph reports, former BitMEX boss Arthur Hayes has a completely different view, as according to him, developments in the mining industry will not have a significant impact on the price of Bitcoin.
Hayes believes that even the complete sale of all BTC by miners would basically be a drop in the bucket.