Contrary to expectations that Bitcoin’s price will become more volatile for an upward push after the third halving event, the digital asset’s price has instead been unusually stable, hardly stepping outside boundaries of $9,000-$9,500. While there is a number of possible explanations of such performance, the crypto community is hanging back in anticipation of the next rally.
Crypto pundit @TheCryptoDog, recently expressed his mood caused by the prolonged expectation of the new dramatic price movements.
Current state of Bitcoin
While Bitcoin volatility has decreased sharply since May, this makes it a positive environment for altcoins to thrive. As the ‘HODLing’ interest heats up, more investors are now increasing their Bitcoin stack in the projection of promising future price movements of the digital asset.
Nowadays, this characteristic of stability has made Bitcoin come really close to the ‘digital gold’ status. It acts as a sound store of value against the coming wave of inflation, thus being a hedging tool in times of economic uncertainty. Its growing scarcity also adds up to the image, making Bitcoin more exclusive after each consequent halving event.
Is the next bull run around the corner?
Despite a high degree of correlation with the S&P 500 index, Bitcoin is still expected to blast off as it embraces much broader territory. For example, the economic crisis in Venezuela and China’s booming mining activity all affect the price of BTC, which could eventually lead to universal adoption. Notably, the African continent may be the one that spearheads the next major bull rally.
Besides, investors are longing for the post-halving Bitcoin price push which hasn’t arrived yet. So far, it only stimulates wild speculations – according to some pundits, the community may see it at the end of this year, with Bloomberg analysts predicting that its price mark will soar to $20,000.
On the whole, the crypto space is seeing the rise of decentralized finance which justifies their collective boom in market cap. More organizations are now following the trend of adoption of blockchain-based technologies, showing an increased interest in the features of digital currencies. This will most likely kindle the enthusiasm to Bitcoin, which, despite repeatedly being named a speculative asset, now sees an influx of solemnly-oriented long-term investors.