Jeff Park, a consultant at Bitwise, recently highlighted that the current Bitcoin market environment is unfavorable for a significant price surge.
Park explained that underlying market forces are hindering Bitcoin’s ability to break out upwards. Among the main factors are continued selling by early Bitcoin holders and a notable decline in interest for exchange-traded funds (ETFs) and digital asset products (DATs).
He further mentioned that for Bitcoin to escape its present pattern, the market must experience heightened and sustained volatility once again. Park stressed the importance of increased upward volatility, referencing his previous remark from November: “volatility or death,” which indicated an unusual breakout event. At that time, rising volatility sparked temporary optimism; however, this sentiment has diminished over the past two weeks.
According to Park’s analysis, implied volatility has been weakening recently. After peaking near 63% in late November, it has sharply dropped to around 44% within two weeks. This decline serves as a strong signal that short-term bullish momentum for Bitcoin remains limited.
This content does not constitute investment advice.