Bitcoin is eyeing the support level of $27,000, but making a play to leave the Grayscale dump between the range of $25,000 to $26,000.
Bitcoin held steady following news that the US Consumer Index (CPI) rose to 3.7% year-over-year in August.
The crypto market is currently in a state of apathy that has affected its volume and volatility.
Bitcoin price gains slightly
Bitcoin price made a new September high topping out at $26,596 at press time. The price gained 1.39% in the last 24 hours despite news that CPI jumped 3.7% in august.
According to FedWatch Tool, there’s no consensus over the Federal Reserve raising interest rates again later in the month. However, the chances of a pause in the hike stood at 97%.
Bitcoin is eyeing the support level of $27,000, but making a play to leave the Grayscale dump range of $25,000 to $26,000.
Crypto volatility has decreased
The general crypto market has been witnessing a fall in volatility since 2021.
The line labeled Coincore, which is Coinbase’s cryptocurrency measure of volatility, is used in the chart to show how the cryptocurrency market fluctuates. According to David Duong, head of institutional research at Coinbase, the trend of flunctuations has slowed.
He said that more lately, the volatility of cryptocurrencies has even “approached convergence” with the Cboe volatility index, also known as the VIX.
The VIX, sometimes known as the “fear gauge,” serves as a barometer of anticipated volatility and investor mood. When there is apprehension or uncertainty in the financial markets, it increases and follows the S&P 500.
Bitcoin volatility hit a record low last month before the price fell over $1B in liquidations on August 17.
Volatility may be a sign of a stabilising market but a volatile market may also be beneficial to traders to exploit gaps between rocky prices.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.