- Bitcoin is has been trading in a tight range amid decreasing volatility.
- Traders prefer a wait-and-see approach until the range is broken.
Bitcoin volatility has dropped to the lowest level in recent four months, according to the research paper published by Blockforce Capital.
The 30-day volatility of the first digital currency decreased to 47%, which is the lowest level since May 10. The 60-day volatility declined to 54%. BTC/USD has been moving inside $10,000-$11,000 channel for more than a month, which might be a signal that the cryptocurrency market is losing its luster.
“Volatility is some of the lowest we’ve seen in a long time. Clearly, BTC is consolidating” according to Tim Enneking, managing director of Digital Capital Management.
The majority of experts believe that the decreased volatility ins a good thing in terms of cryptocurrency mass adoption as significant price fluctuations make digital coins uselesff for everyday spendidng. However, low volatility may also mean that traders are losing interest in Bitcoin.
“There’s no mainstream killer use case for Bitcoin in developed countries right now. This is a major pain point, although not completely unique, it does seem to be necessary to repeat often,” noted a cryptocurrency millionaire Eric Finman
At this stage, investors are uncertain about what will happen next. The lack of clear vision stops them from active involvement.
“Investors are still in a wait-and-see, although we expect this to change around events, and the volatility to increase as those events affect,” DiPasquale CEO of cryptocurrency hedge fund manager BitBull Capital commented