Despite the significant announcement from PayPal regarding its further entrance into the cryptocurrency space, Bitcoin has fallen below $29,000 and is presently trading at $28,873 on the Bitstamp platform.
According to U.Today, the market leader in global payments has entered the cryptocurrency space further by introducing its own stablecoin, branded as PayPal USD (PYUSD). This signals a crucial step in PayPal’s growing commitment to cryptocurrencies and the company’s most important move since it first entered the area in late 2020.
An early bull run?
In a separate but related incident, Bloomberg analyst Jamie Coutts notes that the existing Bitcoin bull market appears to be just getting started as large investors increase their collection of the digital currency. Long-term investors have significantly increased their purchases of Bitcoin, and they currently own almost 75% of the total supply.
Extremely low volatility
According to the most recent data from blockchain analytics company Glassnode, Bitcoin, a cryptocurrency famed for its severe price fluctuations, is currently experiencing a marked decline in volatility. According to the company, there is now a rare low volatility phase in the Bitcoin market, with fewer than 5% of trading days having a narrower trading range.
The futures market is also quite quiet right now, with trade volumes for cryptocurrencies like Bitcoin and Ethereum approaching all-time lows.
With premiums less than half of what they were in 2021–22, a record low put/call ratio, and an expectation of lower near-term volatility, the options market is now seeing a substantial decline in implied volatility. Call options are currently preferred over put options. According to the analysis, either Bitcoin is losing its reputation for volatility or the current volatility is being overpriced.
