Ethereum's Vanishing Volatility and Bitcoin Settling at $80,000… Where Will the Condensed Power Unleash?

▲ Ethereum (ETH) and Bitcoin (BTC) ©Dasol Go

As Ethereum (ETH) has recently lost price volatility and is confined to a narrow range, resembling a 'compressed spring' accumulating energy, the market's attention is focused on whether Bitcoin (BTC) will break through its resistance level and the direction of US regulations.

According to investment media FXStreet on May 13 (local time), the total cryptocurrency market capitalization has been trading sideways at approximately $2.7 trillion over the past week, maintaining equilibrium. Bitcoin (BTC) has quietly settled above $80,000 and is probing a breakthrough of its 200-day moving average. Experts cautioned against excessive emotional responses, noting that while traders are overly fixated on technical resistance levels, historical precedents suggest these levels can be freely crossed at any time.

Ethereum has given back all its gains since late last month and is once again testing the $2,240 support level, where its 5-day moving average is located. Notably, over the past four weeks, its highs have been gradually decreasing. While the lows have not yet been broken, preventing a confirmed downtrend, there is a palpable tension before a potential price breakout. CryptoQuant diagnosed that institutional capital inflows are changing market cycles, leading to new price movements different from historical data.

Internal financial situations and regulatory risks within the industry remain significant burdens. Large mining company MARA recorded a net loss of $1.3 billion in the first quarter due to the decline in Bitcoin prices, selling over 20,000 Bitcoins. CleanSpark also reported a loss of $378 million. In the institutional sphere, US Democratic lawmakers are demanding a ban on virtual asset profit-making activities by public officials, raising the possibility that the passage of the CLARITY Act could be delayed without a compromise on ethical issues. The finalization of the bill is anticipated in August.

Conflicting assessments from notable figures also continued. Billionaire investor Ray Dalio, founder of Bridgewater Associates, downplayed Bitcoin, stating that its transparency actually leads to a lack of privacy, and asserted that only gold is a true safe haven asset. Conversely, blockchain analytics firm Elliptic secured $120 million in funding to develop AI agents for regulatory compliance tasks, indicating continued expansion of technological infrastructure.

In conclusion, the virtual asset market has entered a phase of searching for direction amidst decreasing volatility in leading assets. Experts analyze that as long as the $80,000 Bitcoin and $2,240 Ethereum support levels are maintained, the current stagnation could be a process of accumulating momentum for an uptrend. Investors should maintain a cautious approach, keeping an eye on the legislative schedule set for August and whether major mining companies will release additional sales.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*