Bitcoin is up over 80% for the year, but another notable feature is the reduced volatility, which could be a catalyst for another rally if technical indicators prove correct.
Bitcoin’s rise comes after digital assets have been rebounding from the crypto winter amid 2022’s bearish run. While the leading cryptocurrency pushed past the $30,000 mark, it has since retreated, but only slightly — moreover, more strength could be ahead.
“But metrics point to this drawdown being only a temporary setback for BTC,” a Bitcoinist article noted. “According to volatility, there are still some ways to go before the rally comes to an end.”
As mentioned, volatility has been subsiding, which is a potential sign that its 2023 rally could be sustained throughout the rest of the year and beyond.
“According to new data shared by on-chain analytics platform Santiment, Bitcoin’s volatility could point to a continuation of the bull rally,” the article added further. “The digital asset’s volatility has been on a decline and has now returned to levels not seen since January 2023.”
Of course, a price rally in bitcoin could offer investors opportunity in exchange traded funds (ETFs). Among the ones to consider are the ProShares Bitcoin Strategy ETF (BITO), the Valkyrie Bitcoin Strategy ETF (BTF), the VanEck Bitcoin Strategy ETF (XBTF), and the Simplify Bitcoin Strategy PLUS Income ETF (MAXI).
Bitcoin Miners See Strength
The rebound in cryptocurrencies is having a spillover effect into miners. As bitcoin and other digital currencies continue to rally, miners are starting to see their bottom lines improve.
“The power-hungry companies that pump new bitcoin into circulation have been thrown a lifeline by the cryptocurrency’s rally to above $30,000 this year, which has conspired with falling electricity prices to boost their profitability,” a Reuters article reported.
The report also noted that “30-day average of mining revenues has risen to $27.34 million a day, the highest level since last June, according to data from Blockchain.com.” Amid cryptocurrencies’ tumultuous 2022, miners were also suffering, which led to many shuttering operations or moving to other parts of the world to reduce mining costs.
“Many public miners were on the brink of bankruptcy at the end of last year. At the current bitcoin price, these companies’ cash flows have substantially improved and most of them should have no problem paying their obligations,” said Jaran Mellerud, analyst at bitcoin mining services company Luxor.
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