Around the start of this week, Bitcoin observed a sharp plunge that had taken the asset’s price from the $30,000 level down to the $29,000 mark. A couple of days back, however, the coin had started surging again and had reclaimed the $26,600 level.
This uplift in the price had come as the US Fed had announced a 25 bps interest rate hike, but before long, the recovery efforts had run out of steam, and now, the cryptocurrency has already retraced its gains from the rally.
Earlier, #Bitcoin had been stuck in a phase of stagnation above the $30,000 level for more than a month, but with the plunge in the price, this streak had been broken.
The asset now sticking near the $29,000 level may mean, however, that volatility hasn’t truly returned for the asset yet, as it still continues to consolidate, just around a different level. When a true break away from this stagnation may happen and the rally would return could possibly depend on the total supply of all the stablecoins.
As explained by an analyst in a CryptoQuant post, range-breaking price rises in Bitcoin this year have generally only come whenever the stablecoin supply has registered an increase.
