How to read crypto price moves

Bigger moves are normal

Cryptocurrencies are far more volatile than shares. Bitcoin, the largest and most traded, has typically moved several times as much as a broad share index over the same period, and smaller coins move more than Bitcoin. Falls of more than 70 per cent from a peak have happened repeatedly in Bitcoin’s history.

So the first question to ask of any move is whether it is unusual for that coin, not whether it would be unusual for the ASX.

Compare like with like

Look at more than one period. A sharp 24-hour fall can sit inside a strong month, or a weak year. FinVolio shows 24 hours, 7 days, 30 days and a year side by side for that reason.

Compare coins with each other. When every coin falls together, the cause is usually the whole market: interest rate expectations, a large liquidation, or a change in risk appetite. When one coin moves alone, look for news specific to it in its related headlines.

Mind the currency. Crypto is mostly traded in US dollars. FinVolio can show prices and charts in either currency (use the A$ / US$ switch at the top of the page). In Australian dollars, a coin’s return also includes the move in the exchange rate, so it can differ from the US dollar figure for the same period.

What FinVolio’s figures mean

• 24 hours is a rolling window ending now, from the exchange spot market (usually Bybit; each coin page names its source).
• 7 days, 30 days and 1 year compare the latest completed daily close with the close that many days earlier.
• Daily closes are taken at midnight UTC, which is 10am in Sydney (11am during daylight saving). They are not the same as an ASX close.

Before acting on a move

Crypto trades around the clock, on many exchanges, with less regulation than shares. Prices can gap sharply when a large holder sells or a platform fails. ASIC’s Moneysmart guide to crypto sets out the risks, and none of FinVolio’s figures are a recommendation to buy or sell.