The team of the Californian cryptostartap SFOX concluded that if in January of this year the market was dominated by “moderately bearish” sentiments, in February they changed to “moderately bullish”.
Below is the SFOX multifactor index, the values of which depend on such variables as volatility, prevailing sentiment in the market, and also indicators of industry development.
The SFOX Index signals moderate bullish market sentiment
Associated with the blockchain, cryptocurrency and ICO HYIP a few minutes. The media has become less loud headlines about events in the industry. But among institutional investors, there is a steady interest in the field of digital assets.
Projects continue to work on various user cases using the blockchain. In addition, the technology is used more widely than before. Analysts are confident that the transition to the “active development stage” is one of the reasons for the gradual decrease in market volatility.
Volatility, correlation
The range of price fluctuations of leading cryptoactive assets, such as BTC, ETH, BCH and LTC, declined in January (compared with the average figures for 2018).
The correlation between Bitcoin, Ether, Bitcoin Cash and Litecoin is very close:
Bitcoin correlates more closely with ether than with “digital silver”. At the same time, there is an inverse interdependence of cryptocurrency prices with the S & P 500 index and gold.
What to expect in February?
Volatility in the market will increase as you approach the expiration dates of futures. On February 13, contracts are executed on Cboe, and on February 22 – on the larger exchange CME.
Also, the amplitude of price fluctuations should increase with the approach of February 27 – the dates of the hard forks of Constantinople in the Ethereum network .
Earlier, BlockchainJournal reported that, according to a number of indicators, Bitcoin is fundamentally undervalued, steady growth will begin around the last quarter of this year.
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