In terms of seasonality, May is considered a relatively successful month for BTC. Given the current risk aversion of investors and the macroeconomic environment, this month of May could turn out to be different.
Those accustomed to Bitcoin’s extreme volatility are scratching their heads and eagerly awaiting a similar rally to last year when the flagship cryptocurrency doubled in price from July to November, its all-time high. What Happened to Bitcoin’s Legendary Volatility? Here are some possible explanations.
BTC is still correlated, but to a lesser extent
As concerns grow about how aggressively the Federal Reserve should tighten policy to fight high inflation for decades, highly valued tech stocks have seen historic volatility. Bitcoin, however, was not beaten to the same extent.
The chart below measures systematic risk by looking at the correlation between Bitcoin returns and the market. Right now, its value is 0.0362, indicating that it is moving in sync with the benchmark, but not so drastically.
Bitcoin Volatility Disappears
I wrote in December that institutional investors could dampen crypto market volatility and smooth market dynamics in the future, and it looks like we are already witnessing this.
The Average True Range Index, a volatility indicator, shows that Bitcoin volatility is falling and is currently at its lowest level since December 2020.
Top Performing Privacy Parts
Over the past three months, the private coin sector, worth a combined $8.84 billion, has seen an overall gain of 20.24% compared to the weak or negative performance of other sectors over the past three months. the same period.
Haven Protocol (XVH)
Haven Protocol saw the biggest gain over the past three months, up 135.23%. With a market cap of $75,268,861, it was trading at $3.04 at the time of writing.
Built on Monero and including xUSD, the world’s first private stablecoin, Haven aims to become an open, private and decentralized offshore bank, with a mint and burn mechanism that allows users to convert between XHV, Haven’s native token, and its ecosystem of synthetic assets and algorithmic stablecoins.
Monero (XMR) is the most popular privacy-centric cryptocurrency based on the CryptoNote protocol, a secure and untraceable system. All Monero transactions remain 100% unlinked and untraceable thanks to a special type of cryptography.
XMR was worth $221.24 at the time of writing, with a market cap of $4,006,536,770. Over the past three months, it has gained 49.81% and outperformed Bitcoin by 40.49%.
Monero is approaching its tail issue on June 8, which should please the mining community and keep the price of XMR high.
Railgun provides privacy for DEX trading and lending with its all-Eth Layer 1 architecture, which does not use Layer 2 nodes or cross-chain bridges to compromise security. It is a smart contract system that gives zk-SNARK privacy of any Ethereum transaction or smart contract interaction.
Railgun allows users to go untraceable when trading, using leveraged platforms, or adding liquidity with any Ethereum dApp.
Currently trading at $3.22 with a market cap of $184,773,805, RAIL is 23.5% off its high of $4.20 set in January 2022, so it is likely to retest the new high soon. .
Another privacy-preserving cryptocurrency, Zcash provides anonymous value transfer using zero-knowledge cryptography. The protocol offers the option of protecting transactions to ensure they are completely anonymous, or making them transparent to display them on the Zcash blockchain.
He was recently revealed that Edward Snowden played a key role in the creation of the Zcash privacy coin.
Over the past three months, ZEC has gained 31.10% against the greenback and 23.04% against Bitcoin. With a market cap of $1,640,053,535, its price is currently $132.16, up 10% in the last 24 hours.