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In the last 6 weeks, Bitcoin's price volatility has been at historic lows. Indeed, the reduction in volatility in Bitcoin has reached a point where it appears to be less volatile than most technology stocks in the traditional market.
The recent daily volatility is around $ 85 or less than 2%. Gone are the days when the first currency saw fluctuations of over $ 1,000 every day. The effect of this phenomenon has had many positive effects on the entire crypt ecosystem.
Below are some of the reasons why this stability or stagnation is happening, even when most traditional financial markets are facing high volatility.
Stablecoins failing:
Tether (USDT) is one of the main examples of stablecoin that do not behave as well as expected by the people. Experts had previously stated that Tether and the applications of the stablecoins were causing fluctuations in bitcoin markets, but these estimates were very exaggerated. They have recalled over a billion coins that burn about 500 million. The small story with stablecoins seems to have calmed down.
Separation from AltCoins:
Older people, in particular, those new to cryptographic ecosystems who considered cryptos as a way to make money, could not distinguish between altcoin and bitcoin. Now, since the price of Bitcoin has remained stable when the fluctuating failures are failing, critics are learning that, in reality, they are very different and barely depend on one from the other. Bitcoins have now regained more than 55% of the entire cryptography market.
Loss of enthusiasm:
Most people do not believe it Bitcoin will make gains to the stars anytime soon. This loss of FOMO by amateur investors in recent months has kept prices under control. However, there is still enough belief in Bitcoin to maintain support levels close to $ 6,000.
Low use of Bitcoin:
The use of the Bitcoin network is poor in recent months. Most of the funds are used to move assets into exchanges. This can be attributed to investors who are cautious and in a "savings mode" rather than using them as a payment method. The low rate of use is the result of strict or uncertain rules against it. In the early days of Bitcoin, it was used as a darknet currency. However, now, the forces of order can easily track the portfolios associated with illicit transactions. In addition, private currencies such as Monero have taken Bitcoin shares in making such transactions.
Satisfied miners:
Current mining yields are pretty good and even many cloud mining schemes are making profits. The halving of the reward will take place in two years, so until then the miners will be happy to support the operations. Miners are certainly reducing their production, due to the extraction of other blockchains, but certainly, most of them are not downloading it.
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