Bitcoin continues to show strength on-chain despite price compression between $100,000 and $105,000. The VP of research at Fidelity Digital Assets notes that Bitcoin is in an “Acceleration Phase” with high volatility and profitability, but derivatives activity is hindering upward momentum. The market is currently facing structural pressures in the derivatives market, causing a lack of decisive movement in Bitcoin’s price. Despite bullish fundamentals, Bitcoin’s volatility has hit a historic low compared to gold. While historical patterns suggest that periods of volatility suppression often precede large moves, the outcome depends on shifts in taker flow, macro conditions, and liquidity.
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