Bitcoin’s (BTC) volatility has fallen to a multiyear low as the largest cryptocurrency remains rangebound.
Bitcoin has now been stuck trading between $61,500 U.S. and $66,900 U.S. for six weeks, or since July 8 of this year.
Trading in BTC remains muted as global bond yields surge, pressuring stocks.
The U.S. 30-year Treasury hit 5.333% this week, its highest level in nearly 20 years, and Japan’s 10-year yield climbed to a 30-year high.
The slide in bond prices, which move in the opposite direction to yields, pushed the Nasdaq 100 stock index down 1.3% on Aug. 18.
The situation has left Bitcoin and other cryptocurrencies languishing and stuck in a tight trading range.
Open interest in Bitcoin has drifted lower to $21.8 billion U.S., down from a peak of $23 billion U.S. seen on Aug. 11.
The decline in open interest suggests that investor positioning in Bitcoin is being unwound rather than built.
Another issue for Bitcoin, say analysts, is a lack of near-term catalysts for the cryptocurrency, especially after the U.S. Clarity Act crypto legislation failed to advance in Congress.
Bitcoin’s price fell from an all-time high of $126,000 U.S. last October to a bottom of $58,000 U.S. at the end of June this year.
Since then, BTC has stabilized but has been unable to break above resistance at $65,000 U.S., say analysts.
