After hovering in the $27,000 range for some time, Bitcoin recently slipped down to the $25,000 range. Notably, this decline has been traced to the recent SEC lawsuit against the world’s largest crypto exchange, Binance.
While there has been a decline recently, analysts suggest that the volatility still remains relatively low. Analysts suggest that implied options volatility, which is a gauge for the market’s expectation of future volatility throughout an options contract’s lifetime, remains relatively compressed.
The dynamic reflects the belief in the market that volatility will remain low, a bet that’s proven profitable for large traders in recent months. Data from The Block suggest that its metric BTC DVol which measures market volatility was recorded at its year low on June 3rd and raised only slightly after that.
However, there has been a stir in the crypto market as the asset gained significant attention on Twitter. According to the data from Into The Block, an on-chain analytics firm, Twitter has been exploding with talks of the two largest cryptocurrencies by market capitalization. This signifies that even though the prices have declined, investors have continued their interest in the asset.
However, Glassnode, another analytics firm, suggests that around 780,000 Bitcoin, which is equivalent to 4.6% of the circulating supply, have been acquired at a price of around $26,800. Now, with the price range slipping below $26,000, it has pushed a larger number of coins into the loss. Reportedly, the percent supply in profit declined from 69% to 62.5% (-6.5%), plunging a further 1.26 million coins into the loss.
It is important to note that several analysts have suggested that every time prices decline, investors look forward to buying more assets. As reported by Todayq News, there has been a significant decline in the number of Bitcoin and Ethereum held on exchanges over the past few days.
Recently, the Bitcoin exchange balance has fallen below 12%, the lowest value achieved since this was first achieved at the beginning of the year. Similarly, in the case of Ethereum, the investors have been looking forward to the asset. As per most recent data, the percentage held on exchanges has reached 14%, marking the lowest level in seven years since July 2016.
Notably, the declining balance of both the assets on exchanges signifies the positive sentiment among the investors for the assets. It also adds to the implication that the investors intend to buy the asset when the prices are low and sell it in times of high prices. At the time of writing, Bitcoin is trading at $25,696.10, about a 0.21% decrease over the past day whereas Ethereum is trading at $1,815.32, about a 2.52 decrease over the past 5 da