Bitwise consultant Jeff Park stated that the current structure of the Bitcoin market is not conducive to a strong price increase.
According to Park, the fundamental dynamics of the market are making it difficult for Bitcoin to make an upward breakout. Key reasons include early Bitcoin investors continuing to sell and a significant slowdown in demand for exchange-traded funds (ETFs) and digital asset products (DATs).
Jeff Park stated that for Bitcoin to break out of its current trend, the market needs to reach a higher and sustained level of volatility again. He emphasized that strengthening upward volatility is particularly critical, recalling his “volatility or death” statement in November, which signaled an unusual breakout. He noted that the increase in volatility at that time created a brief period of optimism in the market, but this expectation has weakened in the last two weeks.
According to Park's assessment, implied volatility has come under pressure again in recent weeks. Having reached approximately 63% in late November, implied volatility has rapidly declined to 44% in the last two weeks. This is a significant indicator that makes it difficult for Bitcoin to gain strong upward momentum in the short term.
*This is not investment advice.
