Bitcoin's price volatility in July 2024 decreased to its lowest level in over a year.
The significant drop in Bitcoin's price volatility is attributed to positive progress in cryptocurrency legal regulations in the U.S., which helps reduce uncertainty in the market.
MAIN CONTENT
Bitcoin's price volatility in July 2024 fell to its lowest level since August 2023.
New regulations in the United States regarding cryptocurrency help mitigate risks and increase market stability.
Bitcoin's price fluctuated between $105,000 and $122,750 in July.
How did Bitcoin's price fluctuate in July 2024?
Data from Blockforce Capital shows that Bitcoin's price volatility in July 2024 dropped to its lowest level in over a year.
Specifically, Bitcoin's annualized volatility over 60 days dropped to 28.53% on July 30, the lowest since August 2023. The annualized volatility over 30 days also decreased to 25.26% on July 23, triggering the lowest bottom since October 2023. Bitcoin's price fluctuated within a range of $105,000 to $122,750 throughout the month.
What causes the sharp drop in Bitcoin's price volatility?
Market analysts point out that the improvement in the U.S. cryptocurrency legal framework is the main factor leading to the cooling of price volatility.
In July 2024, the U.S. House of Representatives passed three bills related to cryptocurrency, including the Stablecoin Innovation Act, which has been signed into law by the President. The U.S. Securities and Exchange Commission (SEC) also released new regulations regarding exchange-traded products (ETP), while supporting innovation in safe asset tokenization. These moves help mitigate uncertainty and increase investor trust.
Clearer legal regulations will help stabilize the cryptocurrency market and attract more sustainable investment in the near future.
Cryptocurrency market analyst, 2024
What impact does reduced price volatility have on investors?
The reduction in volatility helps investors feel safer when trading, reducing the risks from sudden price changes.
Bitcoin's price maintained a stable range between $105,000 and $122,750 in July, providing reasonable trading opportunities for users who dislike high risk. This stability also encourages stronger institutional capital flow into the cryptocurrency market.
What laws and regulations have recently been implemented by the U.S. in the cryptocurrency sector?
The U.S. House of Representatives passed three key bills on cryptocurrency in July 2024, prominently featuring the Stablecoin Innovation Act.
This new law has been signed into effect by the President. Additionally, the U.S. Securities and Exchange Commission (SEC) has issued new regulations regarding ETF trading products and has shown support for innovation in the field of tokenization of securities. These regulations aim to build a transparent legal environment and support sustainable development in the cryptocurrency market.
How will legal factors affect the price movements of Bitcoin in the near future?
The completion of the legal framework is expected to sustain the stability trend and strengthen investors' confidence in Bitcoin.
When regulations are clearer, strong volatility will decrease, making Bitcoin a less risky asset. This also creates momentum for broader adoption and development of cryptocurrency financial products, while attracting institutional investment.
Frequently Asked Questions
What does the sharp decline in Bitcoin's price volatility in July 2024 mean?
The decrease in volatility reflects market stability and reduces risks for investors, supporting more focused institutional capital flow.
What impact does the Stablecoin Innovation Act in the U.S. have on the market?
The law establishes a clear legal framework for Stablecoins, reduces legal risks, and increases transparency in the cryptocurrency market.
Why did the SEC issue new regulations regarding ETP products?
To control risks while encouraging technological innovation and tokenization utility in the financial sector.
What was the price volatility of Bitcoin in July 2024?
Bitcoin fluctuated between $105,000 and $122,750 throughout July 2024.
What factors should be monitored to forecast Bitcoin's price volatility?
It is essential to observe changes in legal regulations, actions from regulatory agencies, and adjustments in institutional investment capital flow into the market.
Source: https://tintucbitcoin.com/bitcoin-giam-bien-dong-thap-nhat-nam/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to always stay updated with the latest news about the cryptocurrency market and not miss any important information!
