Good morning Crypto enthusiasts! Today kicks off with the cryptomarket maintaining a sense of calm – an unmistakable rhythm of rest that many deem as a prelude to a future tumult. While Bitcoin BTC hovers above the $29.1K figure, maintaining a tight range that hasn’t shifted much in the recent weeks, altcoins also remain steady with no striking price alterations noted. However, a K33 report hints at a potentially dramatic period of volatility not too far off.
While Bitcoin’s tranquillity and apathy towards significant macroeconomic and industry events is deemed surprising by many, historical data suggests a likely upheaval may lie ahead. As the cryptocurrency market fluctuates, analysts are starting to question if the current “crypto sleep” could be a precursor to a powerful awakening. After all, isn’t calm always followed by a storm? That being said, Ethereum (ETH) too isn’t faring any different and currently stands at $1,835, a minimal decrement from its recent value.
As per critical insights from K33 Research, historical data reveals that whenever Bitcoin’s volatility dropped below that of traditional big players like the S&P, gold, and the Nasdaq 100 – volatility always ensued. This pattern coupled with Bitcoin’s 30-day volatility dropping to record lows suggests that the cryptocurrency market could be primed for a substantial shuffle.
Cryptocurrency markets are in flux, as trading volumes experience a significant decline, along with derivatives activity. Despite the wealth parity for equity markets swinging in an unfamiliar direction, analysts are hinting at an imminent shift of dynamics.
Now, moving on to the concept of “Hodling”, recent trends curiously suggest a dip in the total supply of bitcoin last active over a year ago. Data analytics firm Glassnode presents charts that indicate certain long-term holders have decided to lighten up their portfolios subtly. With this data at hand, investors might want to keep an eye on the actions of long-term Bitcoin hodlers, as it could be a beacon illuminating the inevitable shifts in sentiment.
As we’ve seen time and again, Bitcoin’s stability never goes without stirring a buzz in the market. Yet, each time the term “stablecoin” is used in conjunction with Bitcoin, market dynamics take a dramatic turn almost immediately. So, the big question stands, are we barreling towards another such unprecedented event? Only time will tell, of course. Until then, let’s buckle up for what promises to be an exhilarating ride.
Lastly, in other news, whispers about Binance potentially facing Department of Justice fraud charges are creating a substantial buzz in the market arena. In addition to that, Elon Musk‘s X is reportedly in the hunt for a data partner aspiring to generate a trading service on the app, stirring the pot in the arena of digital assets. Stay tuned for more updates.
Source: Coindesk
