According to data compiled by Bloomberg Bitcoin (BTC), It has not registered a daily 6% movement during 70 trading sessions, experiencing the longest period of calm since October 2020.
BTC is poised to suffer a slight loss in May, after gaining momentum in each of the first four months of the year.
This is unusual for Bitcoin, which is typically known for large up or down moves, sometimes reversing those moves a day later.
Strahinja Savic, head of data and analytics at FRNT Financial, said:
“At the moment there are few macro determinants such as debt limit negotiations or Fed rate policy, traders are waiting for more clarity. It’s just a wait-and-see period right now.”
According to Noelle Acheson, owner of the “Crypto Is Macro Now” newsletter, while the upside potential for Bitcoin is significant, even on a risk-adjusted basis, there is no compelling reason for investors to pile into crypto right now.
Acheson added that there is not much reason for existing crypto holders to sell, and investors are waiting to see how things turn out in the macro background:
“There may be some downside, but our belief in this is not strong enough to justify the possibility that it will miss a rally. Of course there is some buying and selling, but not enough to increase volatility despite the low volumes and liquidity.”
*Not investment advice.
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