The lack of instability of big ups and downs makes BTC gather more legitimacy

On April 8, Bitcoin opened at $415 and closed at $425, ending the seven-day low-volume weak sideways trend. These changes largely reflect last week's trading conditions, but the only difference is that this week Bitcoin hit a new low in trading volume in several weeks.

Some Bitcoin market experts have tried to explain the recent stability of the currency price by using activity, believing that the low activity of the Bitcoin market has dampened the investment enthusiasm of many players. Blockchain consultant George Samman told CoinDesk that the activity of the Bitcoin market has dropped to the lowest point since 2012, which has led to the "draining" of trading volume, and this week's trading volume is far below the 52-day and 52-week activity averages. He said, "I always believe that this is the calm before the storm," and "it is more inclined to "0" transactions," he added.

Zane Tackett, head of community and product development at Bitfinex, made similar comments, telling CoinDesk, “There is so much waiting that the market is quite stable.” He believes that the current wait-and-see sentiment of investors is likely to be the biggest challenge facing the bitcoin market. They doubt whether bitcoin expansion can be successful, whether the SegWit branch plan can be implemented smoothly on time, etc.

BiteMEX president Arthur Hayes told CoinDesk that there were also seasonal reasons, such as many Western investors were still celebrating Easter while the Chinese were still celebrating the Qingming Festival.

Price Trends

Data from the CoinDesk Bitcoin Price Index (BPI) showed that as of 12:00 GMT on April 8, within seven trading days, the price of Bitcoin climbed from $415.42 to $421.07, a slight increase of 1.4%.

Last week, Bitcoin did experience a significant price fluctuation, with the price of Bitcoin rising from $415.73 at 21:00 on April 8 to $420.25 at 1:00 on April 8. However, before 2:00 on April 5, the price of Bitcoin mostly fluctuated between $417.50 and $420, and at other times it fluctuated between $420 and $422.5.

As of 17:00 on April 8, the Bitcoin trading volume in the 7-day trading period was only more than 8 million, far lower than the active trading volume of 32 million last week. The Bitcoin trading market maintained a tight trend.

Bitcoin’s legitimacy is on the rise

While the recent stable trend of Bitcoin prices has made Ethereum popular, some currency market experts believe that the lack of instability of big ups and downs has made Bitcoin gather more legitimacy.

“Going back a year ago, bitcoin’s instability was a hot topic,” said Tim Enneking, chairman of the Crypto Currency Fund, a digital currency venture capital fund. “If you look at bitcoin’s life cycle, it’s going through a milestone of stability.” Enneking said that “looking back at the criticisms against bitcoin becoming a legitimate currency, their main point is that bitcoin is unstable.” If those arguments don’t hold water, he said, “then bitcoin will be closer to becoming a legitimate currency.”

While Enneking praised the stability of bitcoin's price for making it more practical, other experts said the absence of wild swings in prices made it easier to see the digital currency's reasonable price.

Joe Lee, founder of Bitcoin advertising exchange Magnr, believes that "continued price stability shows that Bitcoin is reasonably priced in a situation with less speculative trading." He added that "price stability allows Bitcoin's practical application areas to shine."