Bitcoin’s going through a serious quiet spell. The world’s largest digital currency is seeing fewer major price swings and low volatility, signs that the coin may be nearing a bottom.
This month, Bitcoin has had only one day with a move of 5 percent or more, compared with nine in January and February. According to the Bloomberg report, Bitcoin made headlines due to strong price fluctuations.
Bitcoin price fluctuations
The low volatility is “a sign that speculation is leaving the market and ultimately a bottom-building process,” Bloomberg analyst Mike McGlone said. In the chart’s technical sense, a bottom formation means a stabilization of prices after a downward trend. When the bottom formation is complete, then the low prices form the so-called bottom – the prices will rise subsequently.
“It simply means that the market is calm and balanced. This means that speculative interest is low,” Morris said. “Given the fact that this bear market is now 10 months old and getting tired, I would be inclined to be optimistic for the next big step”.
The price of Bitcoin has dropped more than 65 percent this year. It has hovered around $6,300 this month, down from a high of $19,511 in mid-December. Bitcoin fell to an annual low of $5,755 in June. The digital token last crossed the $6,000 level in mid-August and hasn’t closed under that price since June.
“The current Bitcoin market is relatively stable,” said Danial Daychopan, chief executive officer of Plutus, an app that allows crypto transactions. “The cost of the emotional traders has been washed away by the recent crash, and with it a lot of the volatility.”
There is currently a lack of the right tools for institutional investors to trade Bitcoin and other crypto currencies. Until “Q1 or Q2” 2019, this problem will be solved by products from companies like Bakkt and Fedelity.