Bitcoin, the world’s largest cryptocurrency, maintained a stable position just above the crucial support level of US$29,000 on Monday morning, while its volatility hit an unprecedented low. The cryptocurrency’s price inched down 0.03% over the last 24 hours to US$29,039.48, leading to a dip of 0.78% for the week. Ether, the second-largest cryptocurrency, also experienced a slight decline, falling 0.48% to US$1,826% and down 1.89% over the past seven days.
The recent stagnation in Bitcoin’s price has left market analysts puzzled. Alex Kuptsikevich, senior market analyst at FxPro, observed that Bitcoin’s most significant fluctuations hovered around US$29,200 when the dollar demonstrated growth and equity markets experienced profit-taking. Investors eagerly await new signals to determine the next direction for the cryptocurrency, as the market remains balanced between a potential return to growth or a further decline.
Adding to the subdued sentiment, the Bitcoin volatility index hit an all-time low of 34.02% on Monday, signaling that market participants show extreme caution. K33 Research noted that Bitcoin’s average volatility for the past week was lower than that of Gold, Nasdaq, and S&P500, suggesting a lack of significant price movements.
The broader cryptocurrency market showed mixed performance, with Solana leading the winners, gaining 2.51% to reach US$23.18, while Dogecoin led the losers, declining 1.97% to US$0.07418. The total crypto market capitalization slightly dipped to US$1.16 trillion in the past 24 hours, with trading volume registering a minor increase to US$20.62 billion.
In the NFT market, the Forkast 500 NFT index inched up 0.28% in the past 24 hours, while Forkast’s Ethereum, Solana, and Polygon NFT market indexes posted losses. Notably, the Cardano index bucked the trend and moved higher.
The NFT-based gaming sector saw some exciting developments as well. Wreck League, backed by Animoca Brands, secured a licensing agreement with Bored Ape Yacht Club (BAYC) developer Yuga Labs. Under this agreement, Yuga Labs’ NFT collections will be integrated into the game, which is set to launch in September. Furthermore, the game’s NFTs will be minted exclusively using ApeCoin, Yuga Labs’ governance and utility token. The news led to a price surge for ApeCoin, reaching a weekly high of US$2.04 on Sunday.
However, the NFT market faced challenges, with the U.S. Federal Bureau of Investigation (FBI) warning about NFT phishing scams. Fraudsters use fake social media accounts to deceive users into linking their digital wallets to intelligent contracts that steal their funds. Additionally, Bloomberg reported a sharp decline in NFT royalties received by creators, plunging from US$269 million in January 2022 to only US$4.3 million in July 2023. Intense competition between NFT marketplaces OpenSea and Blur and a drastic drop in NFT trading volume contributed to the significant decline in royalty rates.
As Bitcoin’s volatility remains at historic lows and the NFT market faces opportunities and obstacles, investors and enthusiasts must remain vigilant in navigating the ever-evolving cryptocurrency landscape.
