The cryptocurrency market, known for its volatility, has been unusually calm in recent times, with both Bitcoin and Ethereum showing reduced price fluctuations. This trend, coupled with low trading volumes, has raised concerns about the overall interest in the digital asset market.
On Friday, Bitcoin's price rose by 1.6% to $26,100, marking a recovery from its previous fall to the $25,000 zone. Despite this increase, Bitcoin's price movement has been characterized by a slow and steady climb this year, a departure from the sudden jumps seen in the past. The largest digital asset has experienced the lowest volatility in its history in recent months. This lack of action seems to be deterring traders, with spot Bitcoin trading volumes in August falling to their lowest levels since March 2019.
Ethereum's story mirrors that of Bitcoin. The second-largest cryptocurrency has even seen its realized volatility dip below that of Bitcoin for the fourth time this year. This phenomenon has led some to argue that Ethereum is maturing and separating itself from other cryptocurrencies.
However, the suppressed trading volumes are causing concern for the market as a whole. August's exchange volume was $423 billion, less than half of what it was last year and the lowest since October 2020. This drop in volume is believed to be one of the reasons behind the low volatility.
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