Crypto Traders Face Nightmare As Every Coin Consolidates

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The global crypto market has been showing signs of weakness as most crypto traders are knee-deep in losses. As the once-volatile market yearns for some action, traders take a back seat. 

Range-low trade volumes and shaky macroeconomic conditions have pulled down the crypto market volatility, as prices of top digital assets move in range bound trajectories. Bitcoin (BTC), Ethereum (ETH), and altcoins, were traders’ favorites due to their volatile price action, but these assets are now noting no to low gains or losses. 

Crypto Market: Risky Assets Low on Volatility 

Cryptocurrencies have often been referred to as risky assets due to their high volatility, but of late, Bitcoin, Ethereum, and the global crypto market cap have been exhibiting signs of stagnation. 

Bitcoin (BTC) price has been trading in a tight price range of between $18,800 and $21,500 for over two months now. The top altcoin by market cap, Ethereum (ETH), has traded between a tight $1,280 and $1,350 range. 

Both BTC and ETH price have given almost no scope to either bulls or bears, as price action maintains a consolidatory stance. 

The consolidation is so profound that Bitcoin price action has become less volatile than traditional equities indices as well. The S&P Volatility Index, which measures equity volatility, registered a new all-time high while Bitcoin’s volatility was nearing all-time low levels. 

Bitcoin volatility | Source: IntoTheBlock 

Data from Kaiko Research presented that Bitcoin’s 20-day realized volatility was lower than Nasdaq’s for the first time since 2020. 

Bitcoin (BTC) volatility, crypto traders volatility
BTC volatility | Source: Kaiko Blog

The gap between BTC and equities’ 30-day and 90-day volatilities has been decreasing since the second half of Sept. despite BTC’s higher sensitivity to macroeconomic data releases. 

Retail Crypto Traders Missing-In-Action

With volatility nearing low levels, retail traders have maintained a silent stance. Data from highlighted that the total USD trading volume on major Bitcoin exchanges had fallen to a monthly average low of just over $28 million. This is the lowest level seen since Nov. 2020. 

Bitcoin (BTC) Price total USD trading volume
Bitcoin total USD trading volume | Source:

With buyers and sellers in no mood for taking risks, trade volumes on centralized exchanges have maintained low levels.

Retailers seemed missing in action, but institutions, too, were not bullish on the crypto market. In Oct. the average daily volumes for BTC-linked investment products dropped to historic low levels as institutional demand saw a drop. 

Grayscale Bitcoin Trust (GBTC) saw the strongest trade volume decline, from $400 million in Jan. to $30 million last week. 

Bitcoin (BTC) investment products daily volume. Crypto traders
Bitcoin linked investment products daily volume | Source: Kaiko Blog

Thus, as the crypto market maintained the eerily calm trajectory, traders still waited for some movement – positive or negative.   

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