The leading cryptocurrency, Bitcoin (BTC), lately saw huge price swings. However, Glassnode co-founder Yann Allemann thinks that a sharp decrease in Bitcoin’s value is improbable despite the erratic market conditions.
Optimism amid market jitters
Following a positive 6% increase on Sunday, Bitcoin experienced a glitch, battling at the $28,500 level, which caused a 4.5% drop the following day.
The underwhelming performance of the recently introduced Ethereum (ETH) futures exchange-traded funds (ETFs) on October 2 and mounting concerns about an impending economic slump are both partially to blame for this shortcoming.
Despite these reasons, the Bitcoin Risk Signal, which is a proprietary indicator, is optimistic due to its recent steep decline below the high-risk level.
According to Allemann, this indicator assesses the likelihood of a substantial reduction in the price of Bitcoin, indicating that a sharp collapse is not imminent.
The state of the crypto market
According to statistics from CoinGecko, the price of bitcoin is presently $27,637, showing a positive trend over the last week with a 5.2% gain.
Despite the initial setback of its futures ETF, Ethereum (ETH) is holding at $1,643.39 and has grown by 3.1% over the last week.
Notably, Solana (SOL), which is one of the top 10 cryptocurrencies, has drawn attention with a week-over-week increase of 21.4%.
At 107.217, the U.S. dollar index has risen to its highest level since last November as the market anxiously awaits important U.S. labour reports.
