HomeBitcoinBitcoin (BTC) Price Indicator Suggests Crypto Market is Set for a Period...

Bitcoin (BTC) Price Indicator Suggests Crypto Market is Set for a Period of Stability

-


Bitcoin and Ether VRP Indicators Point to Low Volatility Ahead

The volatility risk premium (VRP) indicator is pointing towards a period of low volatility in the bitcoin market, signaling a positive outlook for long-term investors. This comes after former BitMEX CEO Arthur Hayes predicted a slow but steady move higher for the leading cryptocurrency.

Since the Bitcoin blockchain’s mining reward halving on April 20, the one-month VRP has dropped significantly from 15% to 2.5%, according to data from Bitfinex’s analysts. This decrease in VRP suggests that market expectations are shifting towards a more stable and predictable environment post-halving.

Analysts at Bitfinex noted that the narrowing of the VRP indicates a consensus among market participants that future volatility may be lower than previously anticipated. This decrease in uncertainty has led to a more positive outlook for bitcoin’s price trajectory in the coming months.

While bitcoin’s VRP has seen a significant decline, ether’s VRP has also dropped from 18% to 8.5%, although it remains relatively elevated compared to bitcoin. This could be due to additional uncertainties surrounding ether, such as the U.S. Securities and Exchange Commission’s upcoming decision on spot ether exchange-traded funds.

Overall, the VRP indicator suggests that both bitcoin and ether may experience a period of lower volatility in the near future, providing a more stable trading environment for investors. With global debt concerns and fiscal spending by the U.S. government potentially driving bitcoin’s price higher, market participants are optimistic about the outlook for the leading cryptocurrencies.

LATEST POSTS

Washington Regulators Pose a Threat to Ethereum and Blockchain Technologies

Texas Emerges as Leader in Web3 Innovation: A Call to Preserve Economic Independence The Texas "economic miracle" continues to thrive, with the state solidifying its...

Details of Binance’s Announcement on Three New Major Trading Pairs Listed

Binance Adds Three New Trading Pairs Denominated in Turkish Lira (TRY) - Expansion of Cryptocurrency Offerings Binance Expands Cryptocurrency Offerings with Three New Trading Pairs...

Inflows to Bitcoin exchanges hit decade-low following record-breaking $74K highs

Bitcoin Exchange Inflows Plummet to Decade Lows: What Does This Mean for BTC? Title: Bitcoin Exchange Inflows Plummet to Decade Lows, Reflecting Shift in Hodler...

JP Morgan explains its preference for Unified Ledger over public blockchain for tokenization – Ledger Insights

Insights on Unified Ledger Concept from JP Morgan and Circle at BIS Innovation Summit The Bank of International Settlements (BIS) has introduced a groundbreaking concept...

Most Popular