According to data provided by Vetle Lunde, head of research at K33 Research, Bitcoin’s volatility has now approached “rare lows.”
In fact, a third of the top 100 companies in the U.S. are currently experiencing higher volatility on a 30-day basis than the leading cryptocurrency.
Lunde has noted that Bitcoin’s volatility has been this subdued only four times since 2021, with the last time being observed in October 2023.
Bitcoin has now recorded weeks of rather anemic price action, failing to convincingly surpass the $100,000 level. It is currently trading at $96,730, according to CoinGecko data.
Glassnode cofounders Jan Happel and Yann Alleman believe that Bitcoin could be on the cusp of a major breakout. “Will it break down first for a bear trap, grab liquidity, and then pump? If so, next stop: $97K–$98K, and $100K becomes easy if it holds!” the analysts wrote.
Bitcoin spot ETFs keep seeing outflows
While bulls and bears are on the verge of a decisive move, there are some indications that the latter might have the upper hand for now.
Bitcoin exchange-traded funds (ETFs), which were the main driver of Bitcoin’s tremendous price rally in 2024, have now recorded four consecutive days of outflows. On Thursday, they bled another $157 million. Even though the time frame is too small to define a clear trend; this might still signal waning institutional participation.
Bitcoin underperforming gold
As reported by U.Today, the flagship cryptocurrency has also struggled to outperform gold this year despite vying to take its share in investor portfolios as a store of alternative value.
ByteTree founder Charlie Morris has opined that Bitcoin’s underperformance is not surprising since the cryptocurrency tends to move in tandem with risk assets, such as tech stocks.
“They take it turns. Gold is generally stronger during risk-off, bitcoin risk-on. Tech has taken a break so BTC soft patch. Gold has gone nuts. Fund flows repeatedly support this thesis,” Morris said.
