In the last 24 hours, Bitcoin has managed to stay above the $6500 mark. This mark has always been a major resistance level for the coin and when it is trading above it, it’s a sign of a bullish market. The month of September has had its ups and downs, hitting as high as $7,200 and bottoming at $6,200 during the month.
Looking back at previous months this might be the single most stable month the coin has been through, in that we haven’t seen rapid surges or dips. One might imagine this is because there were no major announcements that could affect prices. Well, that’s not the case. There has been an array of negative news in the last couple of weeks but they have seemed not to affect the price.
Volatility Is Decreasing And The Market Is Maturing
After the market experienced a bloodbath towards the end of last month, Bitcoin has since settled on the $6,400 mark. For much of this month, it has ranged from $6,200 to $6,800. So, what major has happened this month? Just two weeks ago, the SEC postponed a decision for a Bitcoin Exchange Traded Fund (ETF) by VanEck and SolidX.
In the past, leading up to the decision, there would be a price pump and when the decision was postponed, it would be followed by a selloff. However, this was witnessed. Prices remained stable leading up to the decision and after.
Another sign of maturity was also seen on September 14. The day saw Japanese cryptocurrency exchange, Zaif, report a $60 million theft. According to the exchange, the hackers made away with Bitcoin, Bitcoin cash and Monaco, all estimated to be worth $60 million. Again, this didn’t seem to affect bitcoin’s price. In the past, such an announcement (confirmed or unconfirmed) would trigger a selloff, to billions being shed off the market.
Researchers and experts are also citing the maturity of the market as the reason why bitcoin has been so stable. A report by Chainalysis stated that bitcoin had matured over the past nine months, even though it had rapidly declined. According to the report, bitcoin investors have learned to hold on to their assets regardless of the volatility in the market.
Speaking to CNBC, ShapeShift CEO Erik Voorhees says;
“I don’t expect it [the bear market] to end soon, although I do think that the rate of collapse has slowed considerably. Generally in these bubbles, after you go through several months of a downtrend, you hang out in a range for a while […] But I think we are done with a majority of the collapse.”
Billionaire investor Mike Novogratz doubled down on this claim saying that in recent times even the bears have become uncomfortable selling cryptocurrencies at certain low-price levels.
In the last nine months, a bearish market could be traced back to a negative news or report. Historically, regulation and security were the two major catalysts and caused the biggest damage. In the wake of a better and more mature market, this could be a thing of the past.