I believe that this market has never been characterized by great stability, because unlike institutional markets, the crypto market has been much more susceptible to experiencing large inflows or outflows of capital according to the rumors or the emotional aspect of the investors.
And personally I do not think this will change much in the medium term, because the decentralized aspect of the market prevents it from being intervened by regulatory authorities that prevent the speculative manipulation of prices.
And personally I do not think this will change much in the medium term, because the decentralized aspect of the market prevents it from being intervened by regulatory authorities that prevent the speculative manipulation of prices.
I think it's because of the low levels of available liquidity on exchanges, where price discovery occurs. At current prices -- and this is increasingly true at historic prices -- it doesn't take much capital to induce volatility. At this moment, it would only take ~ $1.2 million to push the price up $200 (or 3%) on Bitfinex.
I don't think we'll find stability for years. This is a brand new technology and asset class, so it's really speculative. At the same time, the available supply on exchanges is quite low. There's no escaping volatility there. When the market is much more mature and established, and at higher prices where more capital is required to push price, I think we'll find more stability.
