17 Month Low Volatility for Bitcoins

By Rishma Banerjee

Amidst debates about whether or not a stable Bitcoin is a positive sign for the future, Bitcoin’s volatility rates, because of a slow news cycle and low trading volume, have hit a seventeen month low. Some leading investors are deliberating on if this lack of volatility could be a sign of a maturing market.

For the last month, Bitcoins have not fluctuated much and ranged between $6,200 and $6800. Some investors believe that this could be a trailer for a huge price swing.

Though Bitcoin has been here for almost ten years now, it has seen it’s usage and mainstream adoption over just the past few months.

In an interview to Nigel Green, the founder of the DeVere Group, noted that the stability in the Bitcoin could “be a signal that the Cryptocurrency market is maturing.”

However, a Bloomberg intelligence commodity strategist Mike McGlone, is of the the opinion that this price volatility will continue with the lesser introduction of more and more products related to Bitcoin.

Along with McGlone, the president of President of ProChain David Tawil explained that lesser speculator involvement, will result in the going down of both the volume and the volatility. Once, more long term buyers enter the market, the momentum of buying and selling will decrease considerably.

GilLuria, the director of research at D.A. Davidson & Co is of the opinion that stable markets will attract lesser swing traders who encourage more derivatives, hedging and arbitraging, and thus more volatility. He said,

“Volatility and volumes are two sides of the same coin. When speculators are involved, they drive unusually high volumes as well as volatility by trading the asset with high frequency. As speculator involvement is diminished, volumes go down and volatility goes down as well.”

However, it is the market in the coming days that will have a better answer as to if the parabolic cycles of bitcoins are over as that depends on how it’s price sits with a continuous dynamic trade range.