🔥 Bitcoin volatility is at its lows. What it means?

in HODL2 months ago

Hello!

Today I have read that Bitcoin volatility is at its lows. I tried to find some volatility indicators for Bitcoin and some were saying that we are on a low period but others were pointing that we are in an average period.
So I finally wasn't convinced about what the charts were saying.

However there is an interesting idea that was written by the same author (I can't remember the name) that I think could be true.

In periods of low volatility the exchanges are making less Bitcoin from fees. If they are making less Bitcoin from fees for a long period of time will result in less Bitcoin selling to take profits.

That means that if we are in low volatility period for a long time, it may happen that there is less "selling pressure" from the exchanges and therefore Bitcoin prices tend to rise.

It does not seem like bad reasoning at all, it can make sense if low volatility is present long enough. In addition, for cryptocurrencies low volatility is a blessing. The less volatile this assets become, the more interesting will become for the long awaited institutional money.

There is the counterpart that volatility makes the cryptocurrencies really interesting for traders and risky investors like us, the early adopters.


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Regardless of whether Bitcoin is more or less volatile, what is clear is that time is on our side. Day after day, we are closer to the new highs and the long awaited Bull mMrket that has to take us into space.

Fill your bags now that you can.

Enjoy! 😊


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But less selling means less liquidity, which means more volatile moves when they happen.

What came first, the chicken or the egg?

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Yes, you are right!
When things start to move again we will probably see strong swings in price.
Hopefully they will be on the way up. But it is on the way down I will still be happy buying the dip.

Cheers!

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BTC has been Stable and less volatile for sure ! What worries me is that defi coins are getting crushed lately and this bull run started with defi...

Let’s see how it goes next 😉

Yes, DeFi coins and almost all the altcoins outside BTC and ETH are bleeding...
Well, that is good for someone who is still buying like me. My bags will be filled if this trend continues.
I like it by the way.

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I have cash on the sideline and I might use my LPs then, these take less of a hit b😉

BTC looks quite stable really

That is something good to make the 10,000$ resistance strong.

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