The last four months have been marked by a boring price action from the leading coin, Bitcoin [BTC], data from on-chain intelligence platform Santiment revealed. In the past few weeks, BTCs price oscillated strangely between the $19,000 price region and the psychological $20,000 price region.<\/p>\n
Noticeably, the king coin has been increasingly less volatile in the past few weeks. Glassnode, in a recently published report, compared BTCs performance with that of the broader financial markets. It found that,<\/p>\n
Recent weeks have seen an uncharacteristically low degree of volatility in Bitcoin prices, in stark contrast to equity, credit, and forex markets, where central bank rate hikes, inflation, and a strong US dollar continue to wreak havoc.<\/p>\n
According to Santiment, this decline in volatility could be attributed to the lack of whale presence in the BTC market. The count of BTC whale transactions that exceed $100,000 and $1 million also declined nearly to a two-year low, data from Santiment revealed.<\/p>\n
A persistent fall in BTCs volatility has been partly induced by the lack of whale presence in the BTC market. This aimed to signify attempts by investors to establish a bear market floor. A look at the assets supply on exchanges supported this position.<\/p>\n
According to data from Santiment, BTCs supply on exchanges dropped by 13% in the past four months. The percentage of the coins total supply on exchanges fell from 10.10% to 8.72% between June and October.<\/p>\n
The decline in BTCs supply on exchanges was an indication that buying pressure for the asset rallied in the period under consideration.<\/p>\n
While this ordinarily should aid a price uptick, the downtrodden nature of the broader financial markets made it impossible for the price of BTC to rise significantly.<\/p>\n
While the fall in BTCs supply on exchanges might have indicated a rally in buying pressure in the past four months, a look at the assets Mean Dollar Invested Age (MDIA) revealed that the BTC network was plagued by an increasing repository of dormant coins. <\/p>\n
Data from Santiment also showed that BTCs MDIA has been on a long stretch upward in the past four months showing stagnancy on the network. <\/p>\n
However, for the king coin to see any significant price action, a fall in MDIA is required. This will mean that previously dormant coins have started to change hands.<\/p>\n
According to Bloomberg, October, historically, has been a good month for BTC.<\/p>\n
The virtual currency tends to rise roughly 25% in October and has, since 2015, advanced more than 85% of the time during it.<\/p>\n
Investors hoping for a respite may thus have something to rejoice about.<\/p>\n
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