The capricious cryptocurrency's been uncommonly quiet over the past four weeks, bound in the range of $28,452 and $25,800. Even the end of the U.S. debt ceiling saga did little to whet risk appetite.
This was echoed by Matthew Weller, global head of research at financial services group StoneX. "Looking at bitcoin's chart, traders are waiting for a definitive break away from the $27,000 level that has magnetically pulled prices back consistently," he said. "If implied volatility falls to rock-bottom levels, it can't go much lower," Strijers added. "Trading volatility, buying options in the absence of a price move, that's what people might do in this market."
Longer term, in 2024, they expect bitcoin's halving - a technical adjustment that reduces the rate at which new coins are created - and the U.S. elections to ratchet up volatility.Funding rates, which measure the cost of holding bitcoin via futures, have edged lower, indicating investors are less willing to pay to be long. It was last trading at 0.0098%, way below the 0.0302% seen in March.