Bitcoin ( BTC ) and the digital asset market in general have been consolidating for a while now.
In a Research Note published on Tuesday, K33 stated that the unusual inactivity was most evident in the 7-day trading volume, which has dropped to its lowest level in over two and a quarter years.
The reintroduction by Binance of trading fees slightly distorts the overall picture. The average 7-day spot volume in the first three months of the year was sometimes lower when analyzing trading volumes without Binance.
Bitcoin, the industry bellwether fell to a two-week low in the early morning hours of Wednesday ET. Blockworks Research data indicates that BTC has fallen about 2.1% in the last 24 hours to $26,200.
According to K33, the lack of recent significant price movements has pushed BTC’s volatility 30-day down to 1.69%. This is also the lowest 30-day volatile asset since Jan. 11 – just before BTC’s rise from $16,000 up to $17,000.
K33 stated that despite the fact it is difficult to predict exact volatility triggers, aside from the deadline for debt ceilings, traders must be careful when selling volatility, as conditions are unnaturally calm.
Crypto derivatives also struggle to show signs of life. The blue-chip digital assets’ volume has been declining over the past month. On May 20, the asset reached a low of 2.5 months, with BTC volatile still being lackluster.
For those who are looking for potential upsides in the medium-to-long-term, there is a silver-lining.
When analyzing bitcoin in a wider view, using the Net Unrealized Loss/Profit, it is found that investors are holding 23,5% of their investment as unrealized profit.
In its weekly report, the data research firm CryptoQuant stated that this trend is usually seen during the early stages a bitcoin bull-market, which could indicate crypto’s onset of bullish trend.
CryptoQuant highlights the recent achievement of 1,000,000 active addresses in this month. This is a result of a recent upswing and is a good indication of bitcoin’s resilience.
CryptoQuant stated that this may give some comfort to people who are holding on to the asset, as it shows a healthy level in terms of market activity.