BTC's prices have reached a daily volatility of around $ 85, down from thousands of dollars in a few days, or even just one day.
Bitcoin (BTC) it was used as a deposit of wealth in the past when its price remained relatively predictable. For years, BTC has had long-term stability periods. After the large swings of the first half of 2018, it now appears that the prices of BTC have been locked in a very narrow range. The effects of this condition are numerous: from increasing the incentive to use BTC as an alternative form of savings account, to abandon the markets altogether.
In any case, the recent stagnation could be caused by several factors working unison to protect BTC prices at current levels.
Tether (USDT) leaving the markets: When USDT tokens left the markets, the volatility of the USD declined significantly. USD speculation was one of the sources that led BTC's prices to move more actively. Now that the Treasury portfolio has recovered more than 1 billion coins and burned 500 million, US speculation on Bitfinex has slowed, spreading among the markets.
Altcoin taking charge of the speculation: Volatility may have been removed by Bitcoin, but for reasons of speculation, altcoins are always available. With BTC prices stabilized, the ability to exchange altcoins and get more BTC earnings is a source of income. The Altcoins trace their separate paths and some have a downward trend, but there is always room for speculation against BTC.
A self-fulfilling prophecy: There is simply not enough enthusiasm and confidence in a year-end rally. So, nobody is really interested in bidding for Bitcoin, having no more sense of FOMO as in recent months. Furthermore, there are still expectations that BTC's prices may fall lower, below $ 5,000 and perhaps even below $ 4000. Lack of hope for quick returns, one of the most attractive qualities of a volatile BTC pricing, it's causing fewer traders to bet on quick increases.
Lower the use of Bitcoin: For months, the use of the Bitcoin network has been extremely low. Transactions, as usual, are mainly for moving funds for exchanges.
Analysts are noticing that Bitcoin holders are entering "savings mode", with much less than the currency used for the intended purpose as a means of payment. One of the reasons is that the status of Bitcoin transactions is a legal enigma. Dark markets they are moving towards private currencies, including Monero (XMR), and the share of BTC is lower. One reason is that order forces, as well as ordinary users, are carefully examining the portfolio register and making connections to infamous addresses.
Mineral equilibrium reached: The miners are currently pleased with the 12.5 BTC reward at prices close to $ 6.500. Some mines have their break below that. Current BTC prices also work for some cloud mining schemes. Until the halving of the premium in about two years, most miners will be happy to accumulate premiums and support their operations, while waiting for halving, which could increase BTC's prices.
However, the balance is quite fragile, and the miners may need only a little push to keep adding hashing power. For now, BTC has some less active days when miners go offline or switch to other blockchains.
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