Bitcoin’s price has stabilized — but is down more than half from the cryptocurrency’s peak. picture alliance / ZUMAPRESS.com | Paulo Lopes
Bitcoin’s price is the most stable it has been in five years, recent data says.
This is mainly due to the fact that no one trades with it anymore.
Investors have fled cryptocurrency after a nightmarish 2022 – and bitcoin is still well below its all-time high of $69,000.
This is a machine translation of an article by our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
Bitcoin is finally acting like gold – because interest in cryptocurrencies has dried up in the last year. An indicator measuring the 30-day volatility of the token is located, according to a recent report by Bloombergbased on data from the market research company K33 called, at a five-year low.
That means Bitcoin is more stable than the S&P 500 of US-listed stocks, the tech-heavy Nasdaq Composite, and even gold. However, the trading volume for Bitcoin has also fallen to its lowest level since November 2020, according to K33.
The data reflects the sad reality for advocates of digital assets.
Both institutional and retail investors turned their backs on the sector in 2022 as soaring interest rates and the spectacular collapse of high-profile companies like FTX sent Bitcoin prices plummeting.
read too
Three things investors should learn from the FTX crash, according to a well-known hedge fund manager
And while other riskier assets like stocks have rallied this year, bitcoin is still trading below $30,000 — more than 50 percent off the November 2021 peak of nearly $69,000.
Bitcoin rallied briefly after BlackRock, the world‘s largest asset manager, announced plans to launch an ETF on Bitcoin that tracks the price of the cryptocurrency, but the run has fizzled out in recent weeks.
Bitcoin’s new stability is a cruel twist on bulls’ long-held belief that bitcoin could one day become a kind of “digital gold” — the crypto’s version of a “safe haven” that investors turn to in times of need.
To some extent, their vision of a low-volatility asset has now become a reality — but only because nobody really cares about cryptocurrencies anymore.
External content not available
Your privacy settings prevent the loading and display of all external content (e.g. graphics or tables) and social networks (e.g. Youtube, Twitter, Facebook, Instagram etc.). To view, please activate the settings for social networks and external content in the privacy settings .
Change privacy settings