- The Crypto Market experienced great volatility in the last quarter of 2018, and this is expected to continue in 2019
- According to SFOX, crypto assets showed more volatility than the S&P 500 and gold during November
- SFOX also said that as compared to other top coins in the industry, BCH exhibited the most volatility
The crypto market may have taken a tumble in 2018, but it has also taken quite a surprising turn during the last quarter of the same year. This particularly happened in November and December when the whole cryptosphere went off the charts. According to SFOX’s Crypto Volatility report, crypto assets showed more volatility than the S&P 500 and gold during November. This trend is expected to continue in 2019 although it will be at a less pronounced level.
Fear & uncertainty
SFOX, a leading prime dealer for institutional cryptocurrency investors have also given a comprehensive review about cryptocurrency’s volatility in 2018. They looked into it at a macro level and they also zoomed in to the top coins namely BTC, ETH, BCH, and LTC.
Through industry research and data from 8 major exchanges, SFOX managed to compile the report. Their goal is to provide investors with the right data to help them navigate their way in the crypto industry.
SFOX also said that the volatility during the last quarter of 2018 was not only due to sector advancement but is also fuelled by fear and uncertainty in the market. They also said that whether 2019 will be a bear market or not, the investment in infrastructure and improved community engagement will continuously pay dividends as the industry grows.
The volatility is not over yet
According to the Head of Growth at SFOX, Danny Kim, the volatility will continuously affect the markets. He said that it is expected to happen in the early part of 2019. It is important for investors to have access to data so they can take decisions in a mature manner. To quote Danny Kim, he said,
“The cryptocurrency community has been lacking the data that serious investors need to put market movements into context and make informed decisions. We hope that by breaking down the key drivers for 2018, and continuing to provide these analyses every month, we can contribute to the ongoing maturation of the crypto industry that we saw throughout 2018.”
Danny Kim also commented about the market prices in 2018. He said that the adoption of crypto infrastructure was still encouraging:
“In a year where fear, uncertainty, and doubt continued to significantly influence the price of crypto, the most encouraging trend of 2018 was the advancement of the infrastructure that will continue to support the industry as we move forward in 2019. We see advanced trading infrastructures, like SFOX, having an important role in assisting traders, businesses, funds, and trading firms in balancing their crypto positions as they would in the traditional markets.”
As for investors choosing between BCH, LTC, and ETH, SFOX said that BCH exhibited the most volatility. This may be because of bitcoin’s special place in the crypto community, which has caused strong and positive and negative reactions to the would be challenger BCH.