Crypto market is boring now
Cryptocurrencies were notorious of their volatility. However, the traditional market has been more volatile than the crypto market.
What has happened?
The volatility depends on how certain the future will become. If the future is uncertain, then it is riskier with higher volatility compared with more certainty of lower volatility.
From the asset classes’ point of view, the volatility links to the debts ratio since the higher the debts of the asset classes, the market tends to fluctuate more than it used to.
Also, it depends on the central banks to increase its interest rates, making debts more unprofitable and harder for borrowers to pay off. It makes it harder for whoever borrowed money to make profits than with a lower interest rate environment.
But if you switch your point of view from the focus on debts to credit, you will have a different perspective on how the economy operates.
Debts are eating up money, and credits are providing money.
