Looking at the BTCUSD chart on Coinbase where most of the retail buyers purchase their Bitcoin. A few things become quite clear:
1) Huge volume near the all time highs. The huge surge in interest and popularity resulted in retail buys of Bitcoin at inflated prices. If you look at other charts from more professional trading exchanges the volume is much lower.
2) After price topped at $20k retail buyers were spooked and volume dropped significantly.
3) When prices went back to +$10k retail buyers stepped back in to sell their expensive Bitcoin.
4) Volume from Coinbase has been rapidly declining as the general interest in Crypto declines.
It seems to me that we are left with the same money buying and selling, eventually the price will have to settle down (probably much lower than it currently is) and volatility will reduce.
My thoughts are that retail buyers and institutional investors will only enter back into Crypto once volatility significantly reduces and price settles. This process may take another 3-6 months. We may be in for a few legs lower in price action before that happens.
1) Huge volume near the all time highs. The huge surge in interest and popularity resulted in retail buys of Bitcoin at inflated prices. If you look at other charts from more professional trading exchanges the volume is much lower.
2) After price topped at $20k retail buyers were spooked and volume dropped significantly.
3) When prices went back to +$10k retail buyers stepped back in to sell their expensive Bitcoin.
4) Volume from Coinbase has been rapidly declining as the general interest in Crypto declines.
It seems to me that we are left with the same money buying and selling, eventually the price will have to settle down (probably much lower than it currently is) and volatility will reduce.
My thoughts are that retail buyers and institutional investors will only enter back into Crypto once volatility significantly reduces and price settles. This process may take another 3-6 months. We may be in for a few legs lower in price action before that happens.