The first quarter is considered one of the most sensitive periods in cryptocurrency markets. Historically, the market experiences higher-than-average volatility during this time.
🔹 Why does this happen?
Repositioning after the end of the year
New liquidity enters the market
Expectations change with new narratives
🔹 The main factors worth monitoring:
Overall Bitcoin trend
Does it maintain direction or enter a phase of fluctuation?
Alternative currency sharing
Is the rise inclusive or limited?
Trading volumes
Does it support the price movement or contradict it?
General sentiment
Fear and greed play a significant role during this period
🔹 Understanding volatility instead of fearing it
The volatility at the beginning of the year does not mean that the market is unhealthy.
Rather, it is a natural part of the market's transition between different stages.
The calm investor is one who:
expects volatility
plans for it
and does not get surprised by it
