After a pullback to the top of the $112,000 range on Monday, Bitcoin prices climbed above $115,000. Equity markets saw a similar decline, but have since recovered.
On the evening of August 4, the S&P 500, Nasdaq, and Dow indices rose by 1,30%, 1,75%, and 1,12%, respectively. Coinmarketcap data shows the cryptocurrency market grew by 1,88%.
Bloomberg analyst Eric Balchunas attributes the decline in Bitcoin volatility to institutional capital.
Approval and launch of the first exchange-traded funds (ETF) on Bitcoin in January 2024, poured billions of dollars into the cryptocurrency ecosystem. This was followed by the emergence of Bitcoin management companies that hold large amounts of BTC on their balance sheets. If Balchunas is right, it could mean that the days of wild price swings in Bitcoin are long gone.
Since launch ETF Bitcoin volatility has fallen sharply. The 90-day moving average volatility has dropped below 40 for the first time, compared to the level at launch ETF it exceeded 60.
Bitcoin Volatility. Bloomberg Data
According to Coinmarketcap, on Monday evening Bitcoin fluctuated around $115,000 with minimal positive gains. However, over the week, the digital asset fell by 2,2%.
TradingView data
The daily trading volume remained at $53,43 billion, down 2,21% from yesterday. Market capitalization rose slightly by 0,89% to $2,28 trillion. Bitcoin’s share of the market fell by 24% to 0,91% in 61,56 hours.