If the crypto market is known for one thing, then that is volatility. Users, or holders of the digital token, understand that the price changes in minutes – sometimes even in seconds. However, experts believe that that could be changing very soon. What’s causing this change is the leader of the crypto market – Bitcoin. It is denoted by the symbol BTC.
Per reports, a reduction in the Spot vs. Derivative ratio has signaled that investors prefer to hold onto their BTC in their wallets. The number has sharply gone down from 35% to 6%. Meaning the remaining people are keeping the token with them. It is not a direct interpretation, but one can assume that BTC is taking on the role of digital gold. That is something that people keep in their accounts for a long time.
If this is actually true, then the significant changes will include less volatility and better stability. Prices will change but not to the extent at which they are changing at the moment. The decrease of 29% could bring a stable trading volume in the times to come.
Overall, the interpretation is that investors do not want to sell. It just remains to be seen what the size of these investors is and how many portions they are holding.
As BTC inches toward becoming a valuable asset that is equivalent to gold, experts have also noted that the sale of BTC has come down since the start of 2023. Take figures for March 2023, for example. Trading volume was a massive 2.5 million by the time that month ended. It has come down to 600 thousand in July. Agreed that July has one day to go at the time of drafting this piece. One can assume from the number that the impact will be nothing major on the last day of the month.
Questions about the current and future price of BTC are only obvious. It has been teased as digital gold several times. With a reduction in trading volume and the intent of holders to keep the token in their wallet for a long time, BTC is indeed becoming a digital gold for the world. It is currently listed at $29,414.89. This is an increase of 0.27% in the last 7 days. BTC prediction estimates that the price could go as high as $64,732.93 by the time this year ends. That is an over-optimistic figure which can be a reality if BTC continues to walk on this trend.
This does not necessarily mean that everything will be good for the BTC community. There is speculation that achieving the desired status and reduction in trading volume may eventually dry up the liquidity pool. It could then lead to an increase in demand and, thereby, an increase in the price of BTC.