Bitcoin veteran Samson Mow recently discussed the emergence of "omega candles" in Bitcoin trading. These candles represent significant price movements, with daily increases of $100,000, compared to the previously observed "god candles" characterized by $10,000 daily fluctuations.
Mow believes that as Bitcoin approaches the $100,000 mark, the market will witness even more dramatic price movements, with $1,000 and $10,000 candles becoming commonplace. Mow also highlighted the disconnect between the fiat monetary system and the cryptocurrency market, where large fluctuations in Bitcoin's value are met with skepticism and concern, while debt levels in fiat systems are often overlooked.
The normalization of omega candles in countries with depreciating currencies suggests that Bitcoin's volatility is a reflection of its unique position in the global financial landscape. As Bitcoin gains wider acceptance and institutional interest, the potential for daily price movements reaching $100,000 could attract new investors but also raises concerns about market stability.
The involvement of institutional investors may exacerbate volatility but also lend legitimacy to Bitcoin as a store of value and hedge against inflation. The emergence of omega candles signifies a pivotal moment for Bitcoin and its role in the global financial system, with profound implications for investors, institutions, and the broader economy.