According to the data examined, the volatility of the Bitcoin price seems to have regressed to the levels last observed in 2020.
Bitcoin (BTC) recorded no daily movement over 6% over 70 trading days, marking the greatest stretch of quiet since October 2020, according to data collated by Bloomberg.
After gaining momentum in each of the first four months of the year, BTC is expected to experience a minor loss in May.
This is not typical for Bitcoin, which is notorious for making significant up- or down-moves and occasionally reversing those moves the next day.
Head of statistics and analytics of FRNT Financial, Strahinja Savic, stated:
“Traders are awaiting more clarity given there are currently few macro factors, such as debt ceiling negotiations or Fed rate policy. Right now, all we can do is wait and see.”
Although Bitcoin has a substantial upside potential, even when taking into account risk, “Crypto Is Macro Now” newsletter publisher Noelle Acheson claims that there is no compelling rationale for investors to go into cryptocurrencies right now.
According to Acheson, there are few reasons for current cryptocurrency owners to sell, and on the macro level, investors are waiting to see how things pan out.
Although there may be some downward movement, our confidence in it is insufficient to justify the chance of missing a rally. Despite low volumes and liquidity, there is some buying and selling, but not enough to raise volatility.
Share: Bitcoin Volatility at Lowest Level Since 2020: Experts Explain The Reason
You might also like: