In a context of high volatility, we recorded a new historical performance of 8.51%, fueled by the market and the progressive learning process operated by our system, thanks to artificial intelligence.
While many people were still seeing the queen of cryptos, Bitcoin, blithely exceed $60000 without scruples, we remind them of our recent warning.
However, no particular news seems to have justified the recent sharp correction, except for some understandable profit-taking after the new records at over $58000.
It should be noted that "market liquidity is currently much lower for Bitcoin than for gold or the S&P 500. Implying that even small flows can have a significant impact on prices", as Nikolaos Panigirtzoglou, an analyst at JPMorgan, recently stated in a recent note quoted by Bloomberg.
Bitcoin's trading volume is approximately $10 billion per day for the cash and futures market combined, compared to an equivalent figure of $100 billion for gold. This corresponds to liquidity ten times lower for Bitcoin than for gold (to which Bitcoin is - too? - often compared).
As more and more individual and institutional investors are moving into Bitcoin, such a context opens the possibility of sudden movements in both directions, generally dragging other cryptos in their wake.
Once again, this volatility is a source of pleasure for us and feeds our model, even as new exchanges (some of which are decentralized) continue to emerge, offering new arbitrage opportunities.
February 9, 2021.