Bitcoin (BTC) and Ethereum, the largest in the cryptocurrency market, continue to recover slowly and trade in narrow ranges due to the cautious approach and indecision of investors towards the market after the halving that took place over the weekend.
At this point, while it remains unclear in which direction the cryptocurrency market will move, new evaluations have come from analysts.
Speaking to Coindesk, analyst Thomas Kim said, “Market volatility decreased slightly after the halving. The volatility in the last three days was well below the volatility required for BTC options, and investors may still need to follow macroeconomic variables.” said.
“Bitcoin Investors Undecided!”
Asia-based crypto market maker Keyrock analyst Justin d'Anethan said that investors are indecisive and cannot decide which position (long/short) to take.
“An interesting, if not very dynamic, market from both a crypto and traditional perspective; traders seem to be unable to get into a bullish or bearish trend, as evidenced by the fact that prices remain stable.”
Pointing out that there are a number of negative news weighing on the markets, the analyst said that these include the SEC's reluctance to approve ETH ETFs, US President Joe Biden's comments on cryptocurrency mining and the outflows in BTC ETFs.
“Last week's pullback, caused by the deliberate liquidation of some leveraged long positions, has brought relief to the market.
“With the halving coming, crypto investors are not willing to give up on Bitcoin and altcoins and are likely setting themselves up for higher prices in the long run.”
*This is not investment advice.