The Bitcoin price has been surprisingly stable lately and there is now a saying that Bitcoin has degenerated into stablecoin. There are various theories as to why the normally much more volatile Bitcoin price is so stable. Since the beginning of May 2020 there have been no major upward or downward outbreaks that have not been corrected immediately.
Bitcoin exchange rate virtually unchanged since May
The Bitcoin price has been trapped between $ 9,000 and $ 10,000 since May 2020 and actually has no significant breakout that was not immediately offset. The Bitcoin price has rarely experienced such stability over a period of two and a half months. As can be seen on the price curve of the past three months, volatility continues to decrease as time progresses.
Interest in Bitcoin is declining worldwide
Interest in Bitcoin worldwide continues to decrease, at least if you use the Google search query as a basis. In addition to two strong but only brief increases in search queries, an overall downward trend can be observed. The search highlights mentioned occurred during the global lockdown by the corona pandemic and during Bitcoin Halving. Since then, interest has continued to decline.
Bitcoin price influenced by trading bots?
Another reason for the long sideways movement of the Bitcoin price could be trading bots. So-called “HFT – High Frequency Trading” programs trade on virtually all stock exchanges and use the smallest price fluctuations to generate profits. Because the bots can create hundreds of buy and sell orders in a fraction of a second, supply and demand would be influenced and artificially limited. In addition, entire companies have now specialized in HFT bots and are also attracting large investors.