Bitcoin is displaying a resemblance to gold, as cryptocurrency enthusiasm has waned in the past year.
Consequently, Bitcoin now demonstrates greater stability compared to the US-listed stocks’ S&P 500 benchmark, the technology-focused Nasdaq Composite, and even gold.
Nonetheless, according to K33, the trading volume for Bitcoin has also diminished to its lowest point since November 2020.
The data illustrates a somber truth for advocates of digital assets.
Throughout a challenging 2022, both institutional and retail investors distanced themselves from the sector. The year witnessed soaring interest rates and the dramatic downfall of prominent entities like FTX, which led to a sharp decline in Bitcoin’s value.
As riskier assets such as stocks have experienced a resurgence this year, Bitcoin continues to linger below the $30,000 mark, which stands over 50% lower than its peak of nearly $69,000 in November 2021.
A brief rally ensued after BlackRock, the world’s largest asset manager, expressed its intention to introduce a spot ETF that follows Bitcoin’s price. However, this momentum has dwindled in recent weeks.Buy Bitcoin Now
Bitcoin’s newfound stability presents a bitter irony for enthusiasts who once believed it could evolve into a “digital gold” – a cryptocurrency equivalent of a “safe haven” sought by investors during tumultuous periods.
In a sense, their aspiration for a less volatile asset has materialized – albeit primarily due to the waning interest in cryptocurrencies in general.