There’s slightly good news on the Bitcoin price horizon, and that’s breaking past the $30K point for over a week. It’s not the move we’ve all been waiting for, but it’s certainly an uptick compared to the laziness before. Crypto markets were slightly in the green on Tuesday after the government’s bond yields headed sharply lower than the expected. Bitcoin’s price may also have been influences after PayPal announced plans to create a stablecoin soon.
The highest price Bitcoin reached on Tuesday was $30,068. That was a 2.9% jump from before, and the first jump over $30,000 since August 3. It wasn’t just Bitcoin. Solana, Chainlink, and toncoin all made positive moves for a brief moment, before the market fell back into its currently stuck position.
Not a Great Financial Moment
The good news for crypto investors is that the price jump comes at a bad global financial moment. China just reported a 12.4% import decline in July, which was almost double the drop expected by financial experts and economists. Exports dropped almost 15%, while the projection was around 12%. Those levels in China haven’t been experienced since the COVID-19 lockdowns, so it’s pretty clear the country’s economy is currently in shambles.
Not that things are great elsewhere. US’ 10-year yield is lower by over 11 basis points. Yields on government-issued bonds across Europe are in even worse position. It’s a global financial problem that’s been lingering for years, and some experts believe the worst is yet to come. When you compare that to the current crypto market, it’s clear who the winner is.
As reported last week, Bitcoin’s price hasn’t made any positive jumps. Sitting in an oversold position last week, it was clear that any bounces might be disappointing. While this week didn’t bring the bounce we were all hoping for, it was much better than the expected. But, since jumping to over $30,000, Bitcoin slid back into its comfort zone, with the price stuck in limbo in the $29,000 range.
Since its inception, Bitcoin has been plagued by one problem – the high volatility. That volatility has kind of calmed down in recent years, and reached its peak this year. Similar periods were observed in the 2016 and 2019 cycles, although this one is on another level. We’re seeing record-low Bitcoin volatility, which might be a good or a bad thing depending on how you look at it.
Those looking for a stabler market will surely be delighted by it. Investors with big money are dreaming of higher volatility as it can make good profit. Overall, it’s good that we’re seeing a stabler price range, although experts believe Bitcoin has been stuck at this level for too long. So, what happens next? One thing’s for sure – things won’t stand like this for very long.
Periods of boring market action will continue for a while before a breakout happens. Let the summer pass, and we hope that the crypto market goes green with renewed vigor.