Bitcoin (BTC) continues to exhibit on-chain energy regardless of a protracted interval of value compression between $100,000 and $105,000.
In keeping with Constancy Digital Property’ VP of analysis, Chris Kuiper, the flagship crypto stays in its “Acceleration Part,” a interval characterised by elevated pockets profitability and volatility, at the same time as derivatives exercise dampens upward momentum.
Bitcoin closed at $104,119 on Might 13, with 99% of addresses in revenue. Constancy information reveals that 10 days in Might have certified as high-profit, high-volatility periods. Traditionally, this section has aligned with breakout actions, together with the surge that adopted the US election in late 2020.
Regardless of these situations, Bitcoin has been unable to decisively breach its higher resistance ranges, with closing costs largely contained inside a slim $94,000 to $104,000 band all through the primary half of Might.
Derivatives exercise creating headwinds
In keeping with a Might 16 report by CryptoQuant contributor Darkfost, the restrained value motion stems from structural pressures within the derivatives market.
The report highlighted that cumulative web taker quantity, a measure of aggressive buying and selling stream, has remained unfavorable since Bitcoin reclaimed the $100,000 stage. This imbalance reveals that quick positions have outweighed longs, producing sustained promoting stress.
The bearish positioning signifies that merchants are skeptical of a near-term transfer to new all-time highs and are actively betting in opposition to additional upside. So long as this imbalance persists, Bitcoin’s upward potential stays capped regardless of favorable situations in spot and on-chain markets.
Value stagnation within the presence of bullish fundamentals is just not unprecedented. Nevertheless, even sturdy community alerts may be muted briefly when by-product flows overpower spot accumulation.
The present divergence between derivatives exercise and on-chain profitability highlights the friction in Bitcoin’s value discovery course of.
Bitcoin volatility hits file low vs. gold
Bitcoin’s muted value motion has additionally resulted in a historic compression of volatility, which has hit ranges final seen greater than 10 years in the past.
VanEck’s head of digital belongings analysis, Matthew Sigel, famous on Might 16 that Bitcoin’s 30-day volatility has dropped beneath gold’s for the primary time since information monitoring started.
Primarily based on Bloomberg terminal metrics, the BBR/GC1 ratio is now at 0.857, its lowest stage over a decade.
Whereas derivatives positioning stays a near-term barrier, historic patterns recommend that extended durations of volatility suppression have usually preceded giant directional strikes.
Whether or not that materializes once more will depend on shifts in taker stream, macro situations, and liquidity situations.
On the time of press 1:56 am UTC on Might. 17, 2025, Bitcoin is ranked #1 by market cap and the value is down 0.55% over the previous 24 hours. Bitcoin has a market capitalization of $2.05 trillion with a 24-hour buying and selling quantity of $44.01 billion. Be taught extra about Bitcoin ›
On the time of press 1:56 am UTC on Might. 17, 2025, the whole crypto market is valued at at $3.28 trillion with a 24-hour quantity of $109.93 billion. Bitcoin dominance is at present at 62.52%. Be taught extra concerning the crypto market ›
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