Been watching the charts and crypto keeps climbing even with all this crazy volatility. The swings are massive but the trend stays up.
Usually when markets get this choppy people bail out. What’s driving this?
Volatility doesn’t kill trends, it just makes them messier. People are used to crypto swings now.
Smart money buying every dip while retail panics.
Leverage works both ways in crypto. When prices drop, overleveraged positions get liquidated, causing forced selling. Once that selling pressure exhausts, buyers step in hard.
Crypto liquidity remains thin compared to forex or stocks. Even small sustained buying can push prices up quickly after a selloff. This volatility helps shake out weak hands regularly.
Macro factors also play a role. Dollar weakness and inflation concerns drive people toward alternative assets.
Big players are treating crypto like digital gold now. Institutional buying is driving this uptrend.
The volatility is just creating chances for traders. When Bitcoin drops by 5-10%, you see a lot of buy orders show up. That keeps lifting the prices.
Crypto is also acting differently from stocks lately. During market stress, while stocks fall, crypto sometimes stays strong or even rises.
Don’t forget about supply. The effects of Bitcoin halving are still being felt, and ETFs keep absorbing available coins.