Bitcoin volatility has been a source of concern for every crypto enthusiasts following the asset’s underwhelming price that hasn’t fared any better since the second week of this month. BTC is in a highly volatile phase as it consistently drops in financial value. It was soaring at the beginning of the year, reaching an all-time high of $41,940. Unfortunately, the cryptocurrency couldn’t maintain the bullish run. It surprisingly entered an unexpected volatile stage, which has successfully crumbled the BTC price, bringing it down to $34,000 and subsequently to under $30,000.
Chinese new year festival tipped to improve Bitcoin’s volatility
Many Bitcoin investors and traders anticipate the start of the Chinese new year festival as they believe it will help boost the asset’s volatility. Lots of travelings and spending characterize the Chinese new year festival; hence, more transactions would be completed with Bitcoin during the 16 days of celebration, thereby reducing the asset’s volatility rate in the long run. Meanwhile, the CEO of Connecticut-based OneRiver Asset Management, Eric Peters, claimed that Bitcoin’s recent high volatility rate wouldn’t last longer than expected.
While commenting on the asset’s unimpressive performance, the CEO said that Bitcoin’s slump results from an increased volatility rate, which is expected to get better as time goes on. According to his statement, the Bitcoin market will possibly witness a certain amount of volatility for a while.
Still, it won’t stop the world’s most significant digital currency from regaining its financial strength and prowess. Furthermore, Peters is equally relying on other cryptocurrencies’ intuitive features to help Bitcoin become less volatile before the end of next week’s dealings. He reiterated that the increase in Defi assets attracts new investors every day, which will indirectly boost Bitcoin’s fortune in the coming days.
Investing in emerging digital assets is more profitable than investing in Gold
The Chief equally shares his thought on the emerging digital assets and why it is essential to invest in them at the moment. In an interview, he told Bloomberg that investing in new emerging cryptocurrencies is more profitable than investing in Gold because the crypto world is developing fast. In his words, newly created digital assets and other existing cryptocurrencies will be widely adopted as means of transaction around the globe, leaving Gold with no option but to experience a reduction in value.
According to him, digital assets can easily be improved and upgraded using system software to make them more marketable and profitable. Unlike cryptocurrency, Gold can’t be upgraded using software, meaning it can’t be easily or regularly upgraded in the market. Bitcoin and other altcoins can upgrade monthly, annually, or yearly, which is one of the benefits investors stand to enjoy over Gold’s investors.
Meanwhile, Eric Peters and his company are listed among firms ready to invest more money in the crypto space this year. In a list compiled by Samson Mow on the 4th of January, One River is one of the private institutions expected to purchase Bitcoin ranging from $100 million to $600 million before the end of the business year.