Bitcoin, the flagship cryptocurrency known for its notorious price fluctuations, has exhibited historic stability in recent times, catching investors and market watchers off-guard. This current tranquility is the longest since October 2020 and goes against Bitcoin‘s reputation for dramatic ups and downs.
This period of relative peace continues, and Bitcoin has not experienced a daily move greater than 6% for 70 consecutive sessions. This unanticipated steadiness, along with the possibility of a marginal loss in May following four months of gains, has left the crypto community intrigued. Confounding factors, such as unresolved political and monetary issues, are believed to contribute to this unexpected calmness.
Macro catalysts like the debt-ceiling negotiations and the Federal Reserve’s ambiguous interest rate policy are now playing out, causing traders to exercise caution. The ongoing impasse over the debt ceiling resolution in the United States has only added to the looming risk of a default.
The Federal Reserve’s recent meeting likewise expressed policymakers’ doubts about additional policy tightening necessary to combat inflation. In the face of these uncertainties, market participants are adopting a wait-and-see tactic, anticipating further clarity before making significant moves.
Meanwhile, the price of Bitcoin has remained within a tight range around $27,000 for three consecutive weeks. This limited range and low on-chain volume contribute to the impression of a subdued market. According to Glassnode researchers, this reduced trading volume and narrow range represent one of the most tranquil trading periods in recent memory. Furthermore, a considerable portion of the Bitcoin supply remains inactive in crypto wallets, augmenting the overall sense of market stagnation.
On a positive note, the Bitcoin Core recently launched its latest update, version 25.0. This update offers a variety of new features, bug fixes, and performance enhancements for the Bitcoin network. Improved functionality and efficiency of the Bitcoin Core software are the primary objectives, potentially benefiting users and network participants. This update comes at a critical time when the Bitcoin network requires technological advancements to address scalability and transaction speed concerns amid Ordinals’ resurgence.
At the time of writing, the price of Bitcoin has risen by 1.46% in the last 24 hours, compared to a 0.56% decline during the previous week. Currently, Bitcoin is trading at $26,715.21. While this period of stability may be unusual, it could be a reflection of the market’s watchful waiting as significant political and economic issues play out. As always, thorough market research should be conducted before investing in cryptocurrencies.
Source: Coingape
