For much of the past year, Bitcoin has remained in the AVIV zone, indicating market consolidation and sensitivity to changes.
Bitcoin's Stability in AVIV Zone
Bitcoin has stabilized within the green AVIV zone, located between its mean price and +1 standard deviation. This stability has been observed over the past year, reflecting market consolidation with periodic price rallies.
Role of Institutional Investors
The involvement of institutional players, such as BlackRock, is particularly notable in light of their role in the ETF market. According to Przemysław Kral, there has been an increase in demand driven by favorable regulations and economic factors. Kral stated, "There are a number of factors increasing demand for Bitcoin, including clearer and more favorable regulations, increased utility such as payments, and changing economic conditions..."
Geopolitical Influence on the Crypto Market
Geopolitical factors play a crucial role in market fluctuations and trader sentiment. Bitcoin's price defense in the $100,000–$104,500 range reflects broader market strength and resilience against macroeconomic uncertainties.
The impact of institutional investment and regulatory developments may lead to long-term stability for Bitcoin and its integration into the global financial infrastructure.
