The recent price rally in the crypto space has seen most of the altcoins make double-digit gains and broke key resistance level. However, no one has been able to predict the exact reasons behind the recent surge. Some claims it was the work of an anonymous whale pumping the market with a great load of Bitcoin, others believe an April Fool article claiming that SEC has approved Bitcoin ETF triggered the price rally.
However, all these are mere speculations and SFOX report suggests that the recent surge in prices without the specific cause of it has increased the price volatility.
The firm has recently released the price volatility for March 2019, and the report suggests that the recent rally has increased the prices by 25% in just two days. The report also compares the price rallies of late 2017 and indicates that the sharp price rise can generate higher price uncertainty in the market which in turn would drive the volatility higher.
The report also made an interesting point suggesting the high price volatility among other altcoins like BCH and LTC might not be a direct result of BTC movement and the market might be growing beyond BTC.
It’s a quite common observation that BTC is responsible for rallying market movement, however, in recent times, the sentiment is changing.
BCH price rally is being speculated to be driven by the recent announcements about the chain’s hard fork scheduled for the end of this year. However, the SFOX report suggests these announcements do not specifically co-relate with such a massive spike in prices.
Litecoin, another altcoin which has seen its prices skyrocket during the recent surge is believed to be caused by its recent efforts in adoption spree, lower fees, efficient transactions, an exploration of private transactions, and the approaching LTC halving. The SFOX report says that the price volatility stabled for the altcoin as soon as it reached the price point of $55 – $61.
ETC the second largest crypto by market cap became quite volatile since the beginning of the March, The report cited,
“This may be a function of increasing uncertainty about the future of this particular blockchain: on the one hand, ETCLabs’ renewed focus on Dapp development [especially Dapps focused on the Internet of Things] has some believing that ETC may be a currently undervalued platform for powering the next evolution of internet technologies”