Bitcoin volatility hits all-time low in 30 days


Macroeconomics and financial markets

In the US NY stock market on the 2nd of the previous weekend, the Dow Jones Industrial Average was 701 dollars (2.1%) higher than the previous day, and the Nasdaq Index was 139 points (1.0%) higher.

The bill on the US debt ceiling problem passed at the last minute, confirming the avoidance of default (default of debt), which had been feared as a worst-case scenario.

The U.S. employment report showed stronger-than-expected strength in the labor market, but with wage growth slowing, the U.S. Federal Open Market Committee (FOMC) in June is pricing in a moratorium on further interest rate hikes.

As the financial tightening phase came to an end, the stock market and crypto assets (virtual currencies) were positive, and the Dow Jones Industrial Average rose to its maximum this year, leading to a risk-on trend.

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Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin rose 0.07% from the previous day to $27,066.

BTC/USD daily

While it showed a certain level of resilience at the $25,000 level, it has been lowering its topside since mid-April, and price movements continue to be indecisive.

connection:Bitcoin declines due to worsening sentiment, hopes for bottoming out against the backdrop of US funds | bitbank analyst contribution

On-chain data provider Santiment said Bitcoin is lagging behind the strong performance of the US stock index S&P 500. He indicated that he may follow suit.

While the Bitcoin price remains sluggish, the hash rate (mining speed) and difficulty (difficulty adjustment) are hitting record highs.

The stock prices of leading mining companies Marathon Digital Holdings and Riot Blockchain have significantly outperformed the Bitcoin price since the beginning of the year.

Although the stock price has fallen significantly from its peak, the rate of rise and fall since the beginning of the year is +65% for Bitcoin, +254% for Riot, and 186% for Marathon. (As of June 1) Marathon Digital, which developed its own software, said it mined 1,245 BTC in May, up 77% from the previous month.

connection:Marathon Bitcoin Mining Increases 77% Month-over-Month

Behind the dramatic improvement in miner profitability is the surge in transaction fees associated with the rise of Ordinals (Inscriptions) and BRC-20 tokens. It seems that the Biden administration’s tax proposal for mining companies, which was included in the 2024 supplementary budget, was not included in the bill to raise the debt ceiling agreed with the Republican Party.

connection:Good news for the cryptocurrency industry with the US debt ceiling agreement, mining tax hike proposed postponed

Recently, bitcoin volume and volatility have fallen to record lows. According to The Block Research, Bitcoin’s 30-day volatility is hovering around 32%, well below its historical average price volatility of 71%.

The Block

Situation in Hong Kong

In Hong Kong, new cryptocurrency regulations, including a licensing system for service providers, came into effect on June 1. As a result, trading by individual investors is expected to be lifted as early as July, but the stocks that can be listed will be strictly regulated. Currently, over 800 fintech companies are said to be operating in Hong Kong.

connection:Hong Kong to enforce new rules for virtual currency exchanges from June

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