For a long time, Bitcoin is presented as an extremely volatile cryptocurrency, with abrupt price changes from one moment to the next. However, and despite its reputation for extreme volatility, in recent months the BTC price has been unusually stable, even after the Halving of the cryptocurrency. So today we wonder why there is no volatility in the Bitcoin price.
The calm after Halving
For most members of the crypto community, Bitcoin’s third Halving was a crucial event for the coin. And, in the days before the event, many analysts predicted that it would lead to a substantial increase in the price of BTC. Which would correspond to the pattern followed by the two previous Halving of the cryptocurrency.
Thus, during the first months of the year, social networks were filled with forecasts about how high the price of Bitcoin would go, speaking of figures as high as $ 300,000. Which, of course, fueled a run by BTC buyers, who increased demand for the cryptocurrency, in an attempt to acquire as much as they could before Halving.
However, after several weeks since the third Halving of Bitcoin, the long-awaited increase in its price has not yet been seen. By contrast, the price of the cryptocurrency has stagnated around $ 9,000 per BTC for more than a month. Leaving the crypto community wondering what’s going on in the crypto market.
What has happened to Bitcoin’s volatility?
And it is that, for many traders, volatility was not only one of the characteristics of Bitcoin, but also the means that allowed them to obtain large profits in a short time. Well, speculation in the BTC market became one of the best opportunities for traders around the world.
Therefore, and although price stability does not have to be a bad sign for BTC, we wonder what has happened to the volatility of the currency. And in this sense, there are several responses, the main one being a simple rearrangement between the levels of supply and demand in the market.
The same was caused, on the one hand, due to the drop in demand for Bitcoin after Halving. When investors had already accumulated enough BTC to stop buying. A drop that would have been offset by an increase in the entry of institutional investors in the market through Grayscale.
Thus, a fall in demand on the one hand, would have been matched by an increase in demand on the other. What, in the absence of other events that could have moved the market, has led to the practical disappearance of volatility.
Meanwhile, traders are adopting much more conservative investment strategies, waiting for any change in the context that drives or pulls the price. Making this drop in Bitcoin’s volatility our Today’s Data here at CryptoTrend.