Unprecedented Volatility For Bitcoin, Cryptocurrencies - Forex News by FX Leaders

Unprecedented Volatility For Bitcoin, Cryptocurrencies

Posted Friday, January 19, 2018 by
Shain Vernier • 2 min read

To say that the world of cryptocurrencies has been “volatile” over the past week is almost a joke. Volatility is a regular part of everyday life for an active trader. The last seven days in the cryptocurrency markets have been something else—a true picture of fear and greed.

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Last Week’s Cryptocurrency Markets Were The Definition Of Chaos.

It really doesn’t matter what one’s opinion is on cryptocurrencies. There is no denying that they are currently the premier game in all of finance. Whether it is soaring asset values or crazy selloffs, the action in these markets is staggering.

To illustrate this point, take a look at the seven-day pricing swings for some of the biggest names in crypto:

Coin                              7 Day % Change                 Dollar Value

Bitcoin (BTC)                      -19.49%                          -$2,730

Bitcoin Cash (BCC)            -32.26%                              -$834

Ethereum (ETH)                 -19.74%                              -$254

Litecoin (LTC)                     -20.18%                                -$48

This group of statistics is amazing, as is the loss of value. Of course, the yearly gains remain astronomical, which seem to be keeping sentiment toward cryptocurrencies very positive among investors.

Bitcoin (BTC) has been the big story of the week trading within a titanic $5000 range. The action has been hot, with the major area of contention being $10,000. If you have made money off of the action, well done! If not, check out the signals page for a fresh approach to BTC.

Overview

News items have been huge factors driving the volatility in these markets. Daily reporting seems to be gravitating toward coming regulation and hacking issues. A majority of the media coverage highlights negative aspects of the crypto markets, in a skeptical tone. This is a curious theme, and one that is worth monitoring in the coming months.

If you are active in cryptocurrencies, do not ignore the news. These markets appear to be walking on a razorblade, so attention must be paid not only to the headlines but the tone of reporting.

It goes without saying, have your stops in place and leverage under control at all times!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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