Bitcoin, the worlds biggest digital currency, is trading mostly unchanged Tuesday, continuing the theme of lower volatility for the No. 1 digital currency.
Coming off its quietest week of the year, bitcoin hasn’t traded outside the $7,000 to $8,000 range since May 22, in what many proponents see as a good sign for increased adoption of the decentralized technology.
“Some level is price stability is important,” said Charles Hayter, co-founder of CryptoCompare. “There’s a lot of debate around if it’s a store of value, or possibly a currency and the lower volatility does help those camps.”
The 30-day bitcoin volatility index recently made a one-year low, trading at 2.77%, the lowest level since May 2017 and is down from 8.02% since the beginning of 2018, according to the Bitcoin Worldwide Index.
Hayter added that such scenarios have played out before and that the reduced volatility may be just a function of the lack of news, especially on the regulatory front.
One person who isn’t buying into the adoption of bitcoin is Jim Chanos. Speaking at the Institute for New Economic Thinking, the man who predicted Enron Corp.’s demise said bitcoin is a “libertarian fantasy” and it’s “the last thing I’d want to own is bitcoin if the grid goes down.”
A single bitcoin
last changed hands at $7,438.94, down 1.1%, since Monday 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.
Altcoins showing small losses early Tuesday
Altcoins, or coins other than bitcoin, are lower Tuesday. Ether
is down 1.4% to $588, Bitcoin Cash
is lower by 4.6% to $1,066.50, Litecoin
is off 1.8% at $117.41 and Ripple’s XRP coin
is at 66 cents, down 0.2% on the day.
Futures markets are slightly lower Tuesday as well. The Cboe June contract
has lost 1% at $7,430, while the CME June contract
is off 0.9%, at $7,435.