Bitcoin's Low Volatility could Mean Big Moves in the Near Future!

By BranBTC

Bitcoin has been relatively quiet for the past month. According to BuyBitcoinWorldWide, the volatility has been historically low. The 30-day volatility dropped under 1.50%, the lowest it has been since the beginning of April 2019.

What’s important to understand is that Bitcoin often acts as a spring, and these moments of low volatility tend to signal the beginning of giant macro trends and high volatility. April 2019, for example, was the beginning of the move from $4k to over $13k.

The other most recent moments that saw Bitcoin’s 30-day volatility drop below 1.50% were November 2018, when Bitcoin’s price ultimately dropped from $6,500 to $3,200, May 2017, when Bitcoin began its surge from $1,700 to $19,000, and December 2016, when Bitcoin began its surge from $700 to $1,200 (ATHs).

Add this to the list of potentially bullish indicators!

Bitcoin News Roundup
 

Wow. Such Appreciation. Much Price.

Dogecoin has blasted off in recent days, hitting a level of 55 sats as of this writing. Why is Dogecoin rising in price so much?

You’d probably have to be under 16 years old to know intuitively, but for those of us not paying attention to high school social media trends, it may seem a little random. There’s been a viral TikTok trend of TikTok influencers trying to pump the coin to $1.

Why is this appearing in the Bitcoin Magazine newsletter? Two reasons. First off, Dogecoin has often been a leading bullish indicator for Bitcoin and the greater crypto market, especially going into the 2017 bull market. 

Second reason, TikTok’ers are a whole new user base for Bitcoin, and a digitally native one at that. Most of these kids and young adults are getting acquainted with Bitcoin thanks to everyone’s meme-turned-money. They might even use these accounts to seek out financial sovereignty later on- who knows?

At the very least, this is a fascinating trend to watch.

A Bitcoin Sidechain is Growing!

The most widely used Bitcoin sidechain, Ethereum, has taken on more BTC recently. Ethereum data site Dune Analytics is estimating that just the WBTC protocol added 4,800 bitcoins just in the month of June.

One of the reasons behind this wave of bitcoin wrapping is the yield farming explosion that has come to Ethereum’s DeFi sector. Farmers are posting their Bitcoin (among other things) as collateral in order to take advantage of ridiculously high interest rates that certain protocols are giving to incentivize use of their platforms or rebalance their lending books.

One thing to look out for is what happens to the system if Bitcoin starts taking off in price. If a lot of speculators decided they needed their bitcoin back quickly, to take advantage of the price appreciation, it could spell trouble for the extremely leveraged DeFi yield farming system.

Good thing Bitcoin doesn't look primed for a huge price move... right? RIGHT?