Bitcoin had a tough time. But the stablecoin held on to a stable margin. The bearish market is promoting mass selloffs. Meanwhile, a lot of new and existing altcoins went through liquidations and market corrections. The estimated value of that could be between $8 to 10 billion. At the same time, the funding rates are also taking a nosedive.
Volatility shakes up the crypto market
Source: Bybit
The crypto market is always far from predictable. A few weeks ago, the market erased billions of open interests. However, a recent Bitcoin study report says that the token stood steadfast. ByBit also confirms the same news.
Another platform, Crypto.news revealed that Bitcoin was performing better than the rest of the market. In comparison, other stablecoins like Ethereum experienced more volatility. But in the end, ETH also surged 140%, which is the highest in the last 3 months. Meanwhile, the coin is down by 4.44% today. The amount of volatility is just insurmountable.
To adjust the volatility, a lot of coins resorted to liquidation. ByBit CEO gives a broad estimate of $8 to 10 billion of liquidation in the last few weeks. The same source also reviews that more than $3.1 billion open interest has been deleted from the market.
Effect of the change
This market condition also compelled altcoins to take a bearish shift. Meanwhile, few altcoins are performing better than others. In comparison, Bitcoin is maintaining an average. The best part about the same is the stronghold of investor interests.
In recent times none of the Bitcoin perpetuals went through any significant liquidation event.
Takeaway for Investors
The market is not steady. But investments are growing. On second Feb the market witnessed the highest volume of perpetual swaps of the whole quarter. The chief takeaway is that Bitcoin is not a short-term option.
Any early spike, positive or negative, might affect Bitcoin traders heavily. But it is one of the rare tokens that have always returned to stability. So, invest in peace.
