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Is Bitcoin’s record-low volatility and decline in short-term holders a bull market signal?

  • Bitcoin has reached historically low levels of volatility, with only a 2.9% separation between its Bollinger Bands.
  • Reduced volatility and investor fatigue have led to coins being moved based on their cost close to the current price.
  • This situation has only been observed twice in Bitcoin’s history.
  • Establishing a new price range is necessary to stimulate fresh spending and potentially increase volatility.
  • Bitcoin’s low volatility may also reflect broader market trends observed in stocks, oil, bonds, and currencies.
  • Short-term holders’ price distribution is concentrated between $25,000 and $31,000, creating selling pressure.
  • The supply held by long-term holders has reached an all-time high.
  • The potential impact of a global economic recession on Bitcoin’s price cannot be disregarded.
  • Long-term holders’ sentiment and actions may change in adverse economic conditions.
  • Higher yields in equities and rising government and corporate borrowing costs could lead to volatility.
  • Bitcoin’s ascension as an asset class occurred only 6 years ago, making holder reactions uncertain.
  • The historically low volatility raises the question of whether Bitcoin will serve as a hedge against inflation.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of coinpostman.

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