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Bitcoin is too stable and some are worried

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Bitcoin is too stable and some are worried

Bitcoin is too stable and some are worried
CONTENT

  • Over the past couple of months, the bitcoin rate has been behaving unusually stable.

  • Such stability has not been observed since November 2018, but then the calm was followed by a collapse.

  • However, many are happy with the decrease in volatility..

International consortium of news organizations developing transparency standards.

The bitcoin rate has practically not moved since the beginning of June. It has demonstrated similar stability since 2018. It annoys some, pleases others.

Bitcoin is too stable and some are worried

Bitcoin went into hibernation

Bitcoin (BTC) is now experiencing a period of calm, which is very unusual for the world’s main cryptocurrency, famous for its volatility. Traders look at charts longingly. On June 1, the BTC rate was, according to CoinMarketCap, $ 9519. At the time of writing, the pair is trading at around $ 9320.

It is also noteworthy that the peak highs and lows that the market forms are also insignificant ($ 9680 and $ 8975, respectively). According to new data released today by the analytical company Coin Metrics, over the past month, the change in the bitcoin rate was only 1%..

Another resource, Skew Analytics, notes that bitcoin has not experienced such a calm since November 2018. Then it turned out to be the calm before the storm – after just a few months, volatility surged, and not at all in the direction that the hodlers had hoped for. Then the price of bitcoin collapsed by almost 50%.

Bitcoin is too stable and some are worried

What does such a lull in the bitcoin market threaten investors now? Join the discussion in our Telegram channel – and you will find out everything!

Even this year, in mid-March, Bitcoin staged a crash of about 40% due to the massive panic in global markets triggered by the coronavirus pandemic. Now the currency has barely shown signs of life for two months now. Since May, it has not gone out of the $ 9000 – $ 10000 range. This stability is particularly surprising given the ongoing pandemic.

Flight is normal?

Changpeng Zhao drew attention to this in an interview yesterday between Bloomberg and the CEO of the Binance crypto exchange. “Bitcoin has been very stable lately. Now they began to call it stablecoin, “he joked..

However, not all investors find such stability in Bitcoin a relief. She worries some because they fear it could be another calm before the storm..

Others are annoyed by the current situation, as it prevents the currency from crossing the important psychological mark of $ 10,000, which, according to the bulls, could intensify the BTC rally. However, the same Zhao is confident that the aggressive policy of monetary and fiscal stimulation around the world, devaluing the value of fiat money, will sooner or later allow Bitcoin to overcome this barrier..

In general, speculators, as a rule, are dissatisfied with the stability of bitcoin. Meanwhile, such price dynamics may indicate the maturation of bitcoin as an asset and may provide it with a more active advancement in the traditional finance industry. For example, institutional investors, whose arrival in the crypto space has long been expected like manna from heaven, has always been frightened off by the unprecedented volatility of bitcoin..

Nick Carter, a partner at Castle Island Ventures crypto fund, recently commented on Twitter on a hypothetical situation in which the bitcoin price has been holding around $ 9200 for 10 years:

Bitcoin is too stable and some are worried

“Perfectly! As I had planned. Now it can be simply used for online trading. For this, he is needed. Haha what? Did you think it would grow indefinitely? But you yourself understand that this is impossible! ” – Satoshi drinking pina colada in Bali “.

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