fbpx
Money

Bitcoin Volatility Sinks To Lowest In Nearly Two Years

Bitcoin has experienced one of its worst annual price performances of its short 10-year-old life but also appears to have become more stable in the process.

Volatility of the original and biggest cryptocurrency has sunk to its lowest for nearly two years, with price swings falling lower than increasingly edgy U.S. stocks for more than two weeks in a row.

Measured on a weekly basis, bitcoin volatility is set to fall to its lowest since the end of 2016, when the digital coin was still a niche asset yet to muscle its way into global focus.

Volatility has been a major characteristic of the digital currency, which turned 10-years-old last week, throwing up major hurdles to its emergence as a mainstream asset class.

Bitcoin volatility sinks to nearly two-year low

Cryptocurrency intraday price swings lowest on weekly basis since end-2016.

Most mainstream institutional investors, skeptical about its ability to store value in any predictable way, have also stayed clear. At the same time, regulators across the globe 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 exchange-traded funds, leading to them holding off on major purchases or sales.

A fall in trading volumes over the last three months is also a key factor, said Oliver von Landsberg-Sadie, CEO of BCB Group, a cryptocurrency prime broker.

In contrast to bitcoin, volatility in the S&P 500. SPX, has since late September climbed to near seven-month highs. Investors in U.S. stocks are worried over rate hikes by the Federal Reserve and global trade and protectionism.

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

On Tuesday it was trading at around $6,420.

This story originally appeared in Reuters. Image courtesy of Shutterstock.

Join The Discussion

World Chess Championship in thrilling deadlock
World Chess Championship In Thrilling Deadlock [Video]
Poland Celebrates Independence Centenary
Poland Celebrates Independence Centenary [Video]
Israeli Soldier, 7 Palestinians Killed In Israeli Operation Inside Gaza
Israeli Soldier, 7 Palestinians Killed In Israeli Operation Inside Gaza [Video]
World Leaders Hold Solemn Ceremony In Paris To Mark WW1
World Leaders Hold Solemn Ceremony In Paris To Mark WW1 [Video]
Thai Authorities Arrest Top Suspect In Multi-Million Dollar Bitcoin Fraud
Popular Thai Actor Plead Not Guilty In $24 Million Bitcoin Fraud
Crowdfunding Law With Mark Roderick
Crowdfunding Law With Mark Roderick [Podcast]
Binance CEO Predicts A Bitcoin And Crypto 'Bull Run'
Binance CEO Predicts A Bitcoin And Crypto ‘Bull Run’
Swedish Bitcoin Bomber Convicted Of Attempted Murder
Swedish Bitcoin Bomber Convicted Of Attempted Murder
7 Ways to Use Pinterest to Drive Business Results
7 Ways to Use Pinterest to Drive Business Results [Infographic]
How To Make Chatbots Your Secret Holiday Weapon
How To Make Chatbots Your Secret Holiday Weapon
10 Tips To Decrease Your Website Bounce Rate
10 Tips To Decrease Your Website Bounce Rate [Infographic]
How To Set Your 2019 Social Media Advertising Budget
How To Set Your 2019 Social Media Advertising Budget
Instagram Cashes In On Promote For Stories And Fresh Analytics
Instagram Cashes In On Promote For Stories And Fresh Analytics
WhatsApp's Planning To Roll Out Ads In WhatsApp Status
WhatsApp’s Planning To Roll Out Ads In WhatsApp Status
Pinterest Rolls-Out New Carousel Ad Format
Pinterest Rolls-Out New Carousel Ad Format [Video]
Fall Fashion Trends On Twitter
Fall Fashion Trends On Twitter [Infographic]
Priming Your Brain For Success Through Sleep
Priming Your Brain For Success Through Sleep
What “Bohemian Rhapsody” Teaches Us About Living A Braver, Bolder Life
What “Bohemian Rhapsody” Teaches Us About Living A Braver, Bolder Life
6 Signs You’ve Outgrown Someone In Your Life
6 Signs You’ve Outgrown Someone In Your Life
8 Signs That You Are Stressed And Need Time Out To Re-Evaluate Your Life
8 Signs That You Are Stressed And Need Time Out To Re-Evaluate Your Life!
World Chess Championship in thrilling deadlock
World Chess Championship In Thrilling Deadlock [Video]
World s first AI news anchor unveiled in China
World’s First AI News Anchor Unveiled In China [Video]
Poland Celebrates Independence Centenary
Poland Celebrates Independence Centenary [Video]
Israeli Soldier, 7 Palestinians Killed In Israeli Operation Inside Gaza
Israeli Soldier, 7 Palestinians Killed In Israeli Operation Inside Gaza [Video]