Home Cryptocurrency News Bitcoin Why is bitcoin volatility tumbling?

Why is bitcoin volatility tumbling?

4 min read

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.

Bitcoin Worldwide

Bitcoin 30-day volatility 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.”

Read: Bitcoin is ‘the last thing I’d want to own’ if the grid goes down, says famed short seller Jim Chanos

A single bitcoin

BTCUSD, -0.85%

 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

ETHUSD, -0.59%

is down 1.4% to $588, Bitcoin Cash

BCHUSD, -2.74%

is lower by 4.6% to $1,066.50, Litecoin

LTCUSD, -0.80%

is off 1.8% at $117.41 and Ripple’s XRP coin

XRPUSD, +0.84%

is at 66 cents, down 0.2% on the day.

Futures markets are slightly lower Tuesday as well. The Cboe June contract

XBTM8, -0.57%

has lost 1% at $7,430, while the CME June contract

BTCM8, -0.47%

is off 0.9%, at $7,435.

CryptoWatch: Check bitcoin and other cryptocurrency prices, performance and market capitalization—all on one dashboard

Let’s block ads! (Why?)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Vietnam Central Bank Supports Call for a Ban on Cryptocurrency Miner Imports

The State Bank of Vietnam (SBV); the country’s central bank, has adopted the Finance…