Bitcoin volatility is now at a two-year low due to the inaction of most traders.

On Friday night, the BTC rate sank to $16,607, the cryptocurrency has been trading in a narrow range since mid-December.

According to the forecasts of QCP Capital, weak activity is a bearish signal for BTC.

At the beginning of 2023, we are waiting for another strong drop in bitcoin, as capital will enter US government bonds.

The dollar will begin to strengthen again, and risky assets will become less attractive to investors. QCP Capital analysts do not rule out that the negative will dominate the crypto market until the spring of 2023.

The inaction of the largest bitcoin holders this week was also pointed out by the Santiment team. According to her, the number of transactions in the BTC network has decreased by $1 million to the lowest level since December 2020.

Whales refuse to enter the market and prefer to take a wait-and-see attitude.

At the same time, analysts from the Santiment team, on the contrary, consider the weak activity of investors as a bullish signal. They do not rule out that the next exit of whale addresses to the stock exchanges may provoke a rebound of the cryptocurrency.