Bitcoin’s Volatility Lowest in Nearly 2 Years

Bitcoin’s Volatility Lowest in Nearly 2 Years

Bitcoin’s Volatility Lowest in Nearly 2 Years


Bitcoin (BTC) is experiencing 1 of its worst annual price performances of its 10-year-old life, perhaps becoming more stable in the process.

Volatility of the largest cryptocurrency has fallen to its lowest for nearly 2 years, with price swings falling lower than increasingly edgy US stocks for more than 2 weeks running.

Measured on a weekly basis, Bitcoin volatility is set to fall to its lowest since the end of Y 2016, when it was still a niche asset yet get any focus.

Volatility has been a major characteristic of the digital currency, which turned 10-years-old last week. Such volatility was a major hurdle to its emergence as a mainstream asset class.

Most mainstream institutional investors, skeptical about its ability to store value in any predictable way, have stayed away. At the same time, regulators have emphasized price instability when issuing warnings to retail investors dabbling in the cryptocurrency.

Volatility has also prevented the spread of Bitcoin as a method of payments, its intended purpose.

Traders and investors are waiting for clarity on how regulators will treat Bitcoin products such as ETFs, leading to them holding off on major purchases or sales.

A fall in trading volumes over the last 3 months is also a Key factor.

Bitcoin soared over 1,300% last year to a record high of almost $20,000 in December. This year it has fallen as much as 70%, before settling into a period of relative stability since September.

Tuesday Bitcoin is currently trading at $6,454.14.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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