Here’s why crypto investors are acting weird

The former head of the Ark Invest crypto unit has an opinion on what is going on in the cryptocurrency market and why it needs the volatility it has grown accustomed to over years of trade.

Former ARK Invest Crypto Lead Explains What’s Wrong with Crypto Market Today

The rangebound cryptocurrency market is the last thing investors want to see, given the lack of volatility in trading volume. Burniske believes it is “no surprise” that cryptocurrency traders are going “wild” after more than a month with no volatility increases.

The market’s need for risk is not the sole issue. Volatility has always been a major driving force in the cryptocurrency business, as retail traders supply additional inflows to the market anytime they sense a high return chance.

With significant retail inflows in the market, institutional investors often pay more attention to digital assets, providing money that initiates long-term bull runs and enhances the industry’s overall profitability.

Despite the requirement of market volatility, it can occasionally benefit a specific segment of investors. When the market is ranging, it is easier to accumulate assets by buying at the lower boundary of the rangebound each time the asset reverses.

Some traders utilize scalping tactics to increase their profits through leveraged trading. However, such a technique is often regarded as high-risk and should not be used without sufficient risk management and planning. Since June, the average volatility on the crypto market has reduced by about 50%, according to the CVI indicator.

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