Bitcoin market faces cooling demand and lower volatility

The Bitcoin market is currently characterized by cooling demand and decreasing volatility. Recent trading sessions show price movements stabilizing near a neutral zone, with average daily fluctuations dropping to approximately 1.00% from previous highs of 5.00%. This decline in momentum coincides with a reduction in open interest, suggesting that investors are closing positions.

Macroeconomic factors are heavily influencing the asset. Rising interest rate expectations in the United States have increased the attractiveness of the US dollar, creating headwinds for non-yielding assets like Bitcoin.

Despite current volatility, institutional interest remains a focal point. Binance co-founder Changpeng Zhao has suggested a long-term potential price of one million US dollars, provided Bitcoin achieves deeper integration into payment systems and pension funds. Meanwhile, the mining sector is evolving; companies like Iren are transitioning toward infrastructure and AI computing models to diversify revenue streams and reduce direct dependence on Bitcoin price fluctuations.