According to data compiled by Bloomberg, Bitcoin (BTC) experienced the longest period of calm since October 2020, recording no daily 6% movement over 70 trading sessions.
BTC is poised to suffer a slight loss in May, after gaining momentum in each of the first four months of the year.
This is unusual for Bitcoin, which is typically known for large up or down moves, sometimes reversing those moves a day later.
Strahinja Savic, head of data and analytics at FRNT Financial, said:
“At the moment there are few macro determinants such as debt limit negotiations or Fed rate policy, traders are waiting for more clarity. It's just a wait-and-see period right now."
According to Noelle Acheson, owner of the “Crypto Is Macro Now” newsletter, while the upside potential for Bitcoin is significant, even on a risk-adjusted basis, there is no compelling reason for investors to pile on crypto right now.
Acheson added that there is not much reason for existing crypto holders to sell, and on the macro background, investors are waiting to see how things turn out:
“There may be some downside movement, but our belief in this is not strong enough to warrant the possibility of missing a rally. There is some buying and selling of course, but not enough to increase volatility despite low volumes and liquidity.”
*Not investment advice.
