Bitcoin (BTC) and Ethereum (ETH), the two biggest cryptocurrencies by total market capitalization, keep displaying uncharacteristically anemic performance.
According to data analytics firm Kaiko, the 90-day volatility for BTC and ETH has plummeted to 35% and 37%, respectively. In contrast, oil's volatility is currently pegged at 41%.
Volatility refers to the rate at which the price of a given asset increases or decreases for a given period of time. Historically, the flagship cryptocurrency has been known for its penchant for extremely high volatility. However, this has not been the case recently, with Bitcoin acting as a stablecoin.
This unusual bout of stability for Bitcoin has been accompanied by a sharp decrease in trading volume. Data reveals that Bitcoin's trading volume for last month was at its lowest since November 2020, with its 30-day volatility approaching a five-year low.
It is worth noting that Bitcoin now demonstrates lower volatility than other traditional stalwarts like the S&P 500, tech stocks and notably, gold, its closest rival.
Yuri MolchanAs reported by U.Today, the Bollinger Bands, a widely used technical indicator, provides further insights into the anemic performance of the bellwether coin. Bollinger Bands are used to assess price and volatility over time for financial instruments. The narrowing of these bands signals a lull in price fluctuations.
Cryptocurrency analysts have recently observed that both Bitcoin and Ethereum's Bollinger Bands have tightened to their "slimmest on the weekly timeframe." This indicates a broader shift toward tranquility on the crypto market.
In the meantime, oil prices have remained somewhat stable. Recent reports suggest that concerns over China's slowing economy have been offset by expectations of a tighter U.S. supply. However, Brent crude futures and U.S. West Texas Intermediate crude are still navigating the rough seas of global economic factors.
Arman Shirinyan
Dan Burgin
U.Today Editorial Team
Vladislav Sopov