Raul Pal believes that after the stage of “low volatility, bitcoin is growing exponentially”
On August 29, the cost of the main cryptocurrency increased by almost 6% in just an hour — to $ 27,500. This happened immediately after Grayscale won a lawsuit against the SEC, which had previously refused the company to issue a spot bitcoin ETF. The price of bitcoin is currently $27,420, according to Coinmarketcap.
According to CryptoQuant, this August, BTC trading volume was at its lowest level in almost 5 years. Daily trading volume on major platforms has dropped to 129,307 bitcoins.
In mid-August, trading volume dropped to 112,317 BTC. Such a low trading rate for the main digital coin was last recorded on November 10, 2018.
As one member of the cryptocurrency community noted, “trading volumes are declining on a bearish trend as retail investors exit.”
According to CoinMetrics, the value of bitcoin has increased by 57% in 12 months. Analysts believe that the actions of US regulators in relation to digital projects have alienated market makers and traders. They had no reason to return to the crypto market, experts noted.
“In general, the market remains boring. This trend is not necessarily bearish, but participants remain uninterested in trading as the market waits for catalysts,” says Bernstein analyst Gautam Chugani.
And Real Vision CEO Raul Pal believes that the ongoing asset consolidation in BTC could likely end in a sharp rise in the price of bitcoin. The expert pointed out that the thirty-day volatility of the first crypto coin fell to 20 points for the first time since the beginning of this year. Previously, such low volatility became a prerequisite for the further growth of bitcoin.
“After a strong start to the year (when BTC grew by 60% and even 100%), the summer turned out to be completely “dead”. But usually, when the volatility drops to 20 points, then in two to four months powerful movements await us. For example, in April 2016 + 83% in a couple of months, in October of the same year — + 85% for the same period. In March 2019, Bitcoin rose by 214% after three months. In July 2020 — +102%. In January 2023, bitcoin grew by 85% in three months,” said the crypto enthusiast.
