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Bitcoin’s price surged 122% in 2024, yet its annual volatility has never been lower. This is a remarkable development, demonstrating that Bitcoin is becoming increasingly stable over time. In the same report, ARK Invest highlights that stablecoin transaction volume has now surpassed that of Visa and Mastercard.

Extremely Low Volatility for Bitcoin

According to ARK Invest, Bitcoin’s annual volatility fell below 50% in 2024. For comparison, in 2022, it was nearly 80%, and in 2018, Bitcoin’s volatility was well over 100%.

This is a clear sign that the Bitcoin market has become more liquid over the years. It is now increasingly easier to move large amounts in and out of Bitcoin without significantly impacting the price.

This trend is highly positive for Bitcoin, as it makes it easier for institutional investors to enter the market. Without this liquidity—typically associated with higher volatility—Bitcoin would be far less attractive to big capital.

From this perspective, the declining volatility represents a major advantage for Bitcoin and the entire crypto industry.

According to ARK Invest, Bitcoin’s success in 2024 can largely be attributed to the launch of Bitcoin ETFs, which ultimately became the most successful ETF introduction in history.

🔥 BULLISH: Ark Invest CEO Cathie Wood says, “The more uncertainty and volatility there is in the global economies, the more our confidence increases in #Bitcoin.” pic.twitter.com/siX3HEfWYo

— Cointelegraph (@Cointelegraph) January 5, 2025

The Impressive Rise of Stablecoins

Additionally, ARK Invest reports that in 2024, stablecoins have emerged as the dominant application of blockchain technology, with an annual transaction volume of $15.6 trillion.

This means stablecoin transactions now amount to approximately 119% and 200% of Visa and Mastercard’s transaction volumes, respectively.

“The number of stablecoin transactions is around 110 million per month, which is approximately 0.41% to 0.72% of the total transactions processed by Visa and Mastercard. However, the value per stablecoin transaction is significantly higher than that of Visa and Mastercard,” states ARK Invest.

Bitcoin Price Analysis & Trading Tips

Bitcoin is currently trading near a critical support zone after failing to hold above key resistance levels. The price action suggests a potential bounce or further breakdown, depending on market reaction to these crucial levels. Let’s analyze the chart and outline potential trading strategies.

Current Price: $97,880
Resistance Levels: $99,000, $105,000 – $107,000
Support Levels: $97,000 – $96,500, $94,000 – $92,500
Trend: Bearish correction with potential for recovery

Resistance & Selling Pressure

Bitcoin has faced strong rejection around $99,000, which remains a key resistance level. A break and close above this zone would indicate bullish momentum, with potential upside toward $105,000 – $107,000.

Support & Buying Interest

The $97,000 – $96,500 area is acting as a short-term support, with previous bounces suggesting buying interest. However, if BTC loses this level, we could see a move toward $94,000 – $92,500, where stronger demand exists.

Trading Tips

✅ Bullish Scenario: If Bitcoin holds above $97,000, we could see a bounce back toward $99,000. A breakout above this level could push BTC toward $105,000 – $107,000.

❌ Bearish Scenario: If BTC loses $97,000, sellers could take control, leading to a potential drop toward $94,000 – $92,500.

Trading Strategy:

Consider long positions if BTC forms bullish confirmation at support ($97,000) with stop-loss below $96,500.
Watch for a break above $99,000 before entering aggressive longs.
If BTC breaks below $96,500, consider short positions targeting $94,000 – $92,500.

Bitcoin is at a decisive level, and its next move will define the short-term trend. Holding above $97,000 could trigger a bullish reversal, while a breakdown could bring further downside. Traders should monitor volume and price action closely before entering trades.

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Author
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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.