• A trader who rode the crypto breakout earlier this year warns that Bitcoin (BTC) could see muted price movements for an extended period of time.
• The crypto strategist adds that even the volatility in the stock market is not enough to bring BTC’s price action back to life.
• DonAlt goes on to say that Bitcoin’s choppy conditions could last for the next six months.
Bitcoin Could Remain Boring for Extended Period
A trader who experienced a successful crypto rally earlier this year has warned that Bitcoin (BTC) might remain stagnant and lack volatility for a long period of time. DonAlt, a pseudonymous analyst with 52,800 YouTube subscribers, pointed out that despite PayPal’s launch of its dollar-backed stablecoin PYUSD, BTC’s price barely moved – indicating that there may be no significant changes in store anytime soon. He also noted that even the stock market’s increased volatility was not sufficient enough to bring about any dramatic shifts in BTC’s price action.
PayPal Unfazed by Crypto
DonAlt suggested that news of PayPal entering the stablecoin game would have been enough to push up BTC prices by 10%, yet it failed to do so – demonstrating how unfazed traditional financial institutions are when it comes to cryptocurrency adoption. Furthermore, he noted that recent delays involving ETFs had little impact on Bitcoin prices too, with daily candles only exhibiting 1-2% movement – despite S&P trading actively.
Monetary Policy & Volatility
The crypto analyst believes the only thing capable of restoring Bitcoin’s bullish momentum and volatility would be if governments respond similarly as they did during Covid-19 and drastically loosen their monetary policies – similar to what happened in 2020 when interest rates were pushed close to 0%. Until then however, he says it is likely that BTC will remain “boring” for at least another six months.
Current Price Action
At time of writing, Bitcoin is worth $29,248 USD.
Despite a few signs of potential growth in terms of cryptocurrency adoption from traditional financial institutions such as PayPal launching their own dollar-backed stablecoin PYUSD, analysts like DonAlt believe BTC prices will remain largely stagnant due to lack of government interventions such as loosening monetary policies – something which occurred during Covid-19 last year and pushed interest rates close to 0%. Until then however, it is likely investors will experience “boring” price action for some time yet.