Did Bitcoin fall asleep?

By bluu | The Crypto Reports | 6 Aug 2023

If have been following the crypto market for the last few weeks, you may have noticed that it may be pretty… dull. It really seems like we’re in a monotonous state with the lack of movement in price from the crypto giant Bitcoin. Ethereum has stuck around the $1,800 - $1,900 range in the last month, which isn’t surprising since ETH has been normally range-bound for a while. What is the most surprising fact is that Bitcoin has managed to remain around $29,000 USD for the past couple weeks, divergent of the volatility we are used to seeing - it’s as if Bitcoin has suddenly transformed into a stablecoin. 

Bitcoin’s hibernation

It feels like Bitcoin just suddenly fell into a state of slow-wave sleep. Bitcoin has not surpassed $31,000 since mid-July, and has failed to recover since. If you have been watching Bitcoin’s price, it has seemed resistant to recent events, resulting in price stability - but it doesn’t seem so right. Historical data has always shown Bitcoin and reacting to events in the world of blockchain, therefore triggering a high level of volatility in price due to investor reactions. Right now, it only seems that the altcoins have reactions to events and news while Bitcoin decided to fall into hibernation.

K33 Research reports that Bitcoin has reached a five-year low in terms of volatility. BTC is currently less volatile than US stock markets such as the NASDAQ and S&P 500, and even gold, which is known to be consistent in price long term.

An eruption on the way?

It seems likely that the lack of volatility, or this event of deep sleep, will result in a big ignition in price. You don’t normally see Bitcoin acting so stable for an extended period of time - so something is likely to happen. Historical data backs this since when BTC seemed to be stable, it resulted in high volatility in price. We may just be on the verge of a volcanic eruption, as it is very unlikely that Bitcoin could remain stable in the coming days.

Or maybe Bitcoin may just be dead again - let’s add that to the counter of deaths, which stands at 474 at the time of writing.

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