The Low Volatility Phase of Bitcoin: What’s Really Happening?
In the world of Bitcoin, silence is not always golden. The recent weeks have seen Bitcoin’s price volatility drop to historical lows, with the BTC price trading mostly between $29,000 and $30,000. However, beneath this placid surface, a number of intriguing market dynamics are at play.
Main Breakdowns:
- Realized volatility for Bitcoin has collapsed to historical lows, indicating a re-accumulation phase after the bear market.
- Bitcoin’s long-term holder supply has reached a new all-time high, suggesting a future rally and a supply shortage.
- Institutional positioning is surging, with the CME Bitcoin futures seeing a 20-month high in volume and open interest.
- Asset managers are net long, while hedge funds are net short, indicating a potential breakout in Bitcoin’s price.
- The number of new BTC addresses is steadily rising, indicating a stable long-term uptrend.
Hot Take:
The current low volatility phase of Bitcoin may seem uneventful, but the underlying market dynamics suggest a brewing storm. With increasing institutional positioning, a growing number of long-term holders, and bullish indicators, Bitcoin’s price is poised for a potential breakout. So don’t be fooled by the calm, as the storm may be just around the corner.
By
By
By
By