Bitcoin
and other cryptocurrencies were little changed on Thursday as digital asset markets continued to exhibit low volatility—a symptom of investors’ waning interest in wading into crypto markets.
The price of Bitcoin has been roughly unchanged over the past 24 hours at near $25,750. The largest digital asset has recently weakened below $26,000, a level around which Bitcoin has traded for much of the past month, with a recent spike to $28,000 after a pro-crypto court ruling being short-lived.
“Spot markets continue seeing capital outflows, and derivative markets are also witnessing a persistent decline in liquidity,” analysts at crypto market intelligence firm Glassnode wrote in a recent note. “Overall, investors appear hesitant to return to the markets, preferring to move capital higher up the risk curve.”
Bitcoin has languished at levels of record low volatility in recent months, a pattern that looks to be returning to cryptos, which have lagged the excitement of the
Dow Jones Industrial Average
and
S&P 500
in the stock market. While traders continue to look ahead to catalysts on the regulatory front—such as the possible approval of spot Bitcoin exchange-traded funds—little of late is making prices move much.
In all, it’s likely a bad sign for digital assets, which grew popular largely on the back of characteristic volatility that drew in traders.
Beyond Bitcoin,
Ether
—the second-largest crypto—was unchanged at $1,630. Smaller cryptos or altcoins were more mixed but still muted, with
Cardano
down less than 1% and
Polygon
less than 1%. Memecoins were weaker, with
Dogecoin
dropping 2% and
Shiba Inu
shedding 1%.
Write to Jack Denton at [email protected]
Read the full article here