Alex Dovbnya
Despite PayPal’s big announcement of launching its own stablecoin, Bitcoin has slipped below $29,000
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Contents
- An early bull market?
- Extremely low volatility
Bitcoin has slipped below $29,000 and is currently trading at $28,873 on the Bitstamp exchange, despite extensive news from PayPal about its further foray into the cryptocurrency space.
As reported by U.Today, the world’s leading payment processor has continued its push into cryptocurrencies with the launch of its own stablecoin dubbed PayPal USD (PYUSD). This marks a crucial step in PayPal’s growing commitment to cryptocurrencies and marks the most significant action since it first entered the digital currency space in late 2020.
An early bull market?
In a separate but related development, the ongoing Bitcoin bull market appears to be just beginning as major investors increase their holdings of the digital currency, observes Bloomberg analyst Jamie Coutts. There has been a significant increase in Bitcoin acquisitions by long-term investors, who now hold about 75% of the total Bitcoin supply.
Extremely low volatility
According to the latest analysis from blockchain analysis firm Glassnode, Bitcoin, a cryptocurrency known for its extreme price fluctuations, is currently seeing a significant drop in volatility. The company states that less than 5% of trading days currently feature a tighter trading range, indicating an unusually low period of volatility in the bitcoin market.
At the same time, the futures market is significantly subdued and trading volumes for Bitcoin and Ethereum are approaching historic lows.
The options market is seeing a sharp drop in implied volatility, with premiums at less than half of 2021-22 levels and record lows in put/call ratio and 25 delta skew metrics, indicating a current preference for Call options and an… expectation of lower short-term volatility. The analysis concludes that either Bitcoin is losing its infamous volatility tag or the current volatility is mispriced.
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