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Bitcoin (BTC) Dips Below $29,000 Despite Big PayPal News

Mon, 08/07/2023 - 17:54
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Alex Dovbnya
Despite PayPal's major announcement of launching its own stablecoin, Bitcoin has experienced a drop below $29,000
Bitcoin (BTC) Dips Below $29,000 Despite Big PayPal News
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Bitcoin has dipped below $29,000, currently trading at $28,873 on the Bitstamp exchange in spite of the substantial news from PayPal about its further foray into the cryptocurrency arena.

As reported by U.Today, the global payments leader has further ventured into the cryptocurrency arena by launching its own stablecoin, known as PayPal USD (PYUSD). This represents a critical move in PayPal's increasing commitment to cryptocurrencies, marking the most significant action since it initially joined the digital currency space in late 2020. 

An early bull run? 

In a separate but related development, the ongoing Bitcoin bull market seems to be just getting started, with significant investors ramping up their accumulation of the digital currency, Bloomberg analyst Jamie Coutts observes. There has been a marked uptick in the acquisition of Bitcoin by long-term investors, who now hold roughly 75% of the total Bitcoin supply. 

Extremely low volatility  

Bitcoin, a cryptocurrency known for its extreme price swings, is currently witnessing a substantial reduction in volatility, according to the latest analysis from blockchain analytics firm Glassnode. The firm says that under 5% of trading days currently present a tighter trading range, signifying an unusually low volatility period in the Bitcoin market.

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Simultaneously, the futures market is notably subdued, with trade volumes for Bitcoin and Ethereum nearing historic lows. 

The options market is witnessing a sharp decrease in implied volatility, with premiums at less than half of the 2021-22 levels, and record lows in the put/call ratio and 25-delta skew metrics, indicating a current preference for call options and an expectation of reduced near-term volatility. The analysis concludes that either Bitcoin is shedding its infamous volatility tag or the current volatility is mispriced.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at