14 October 2022 | Other

Cryptocurrency markets will see explosive volatility soon

Growing leverage and declining volatility in cryptocurrency markets are creating a situation where explosive volatility is quite possible in the short to medium term, according to Wetle Lunde, an analyst at Arcane Research.

When predicting potential volatility spikes in the short to medium term, Lunde avoided making unequivocal statements about the market's presumed movement. The analyst said that current open interest also exceeds any levels whose valuation can be determined to be sustainable. Wetle Lunde also added that the uncertainty of market signals makes it difficult to form any clear view of a reduction in the specified leverage.

Regardless of what trend emerges in the short to medium term, the Arcane Research analyst is still tuned in to the prospects of bitcoin over a longer period of time. Lunde expressed confidence that next year will bring "clarity on cryptocurrency regulation" in the United States, as well as a more stable regime of interest rates and inflation.

He also predicted further growth in the cryptocurrency market as large financial institutions such as BlackRock, Citadel and Nasdaq have recently entered the industry. He decreed: "I am confident  the show will continue and new highs will be met in the not-too-distant future".

Company MarketCheese
Period: 25.07.2025 Expectation: 440 pips
AUDCAD gains on technical bounce and improved sentiment in commodity markets
Yesterday at 10:05 AM 28
Period: 25.07.2025 Expectation: 1700 pips
GBPUSD struggles to regain momentum as uptrend breaks
Yesterday at 09:14 AM 26
Period: 25.07.2025 Expectation: 222 pips
Buying natural gas with target at 3.780 amid record heatwaves in US and Asia
17 July 2025 62
Period: 25.07.2025 Expectation: 15000 pips
ETHUSD rally accelerates as US moves forward with crypto legislation
17 July 2025 65
Period: 23.07.2025 Expectation: 600 pips
USDCAD gains strength amid dollar rally and falling oil prices
16 July 2025 86
Period: 25.07.2025 Expectation: 1000 pips
Nvidia's return to China pushes shares toward 180 level
16 July 2025 78
Go to forecasts