Bitcoin, the largest digital currency by market capitalization, has been locked in a tight range for several weeks. Over that period, the cryptocurrency has seen volatility steadily decline.
Cryptocurrency market observers expecting more fourth-quarter action out of bitcoin are probably disappointed as the largest digital currency by market values remains mired in a tight trading range.
Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging. Still, there are some important technical levels for bitcoin traders to acknowledge over the near- to medium-term.
“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,” reports Reuters. “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.”
Stability Arrives for Bitcoin
Traders expect bitcoin, the largest digital currency by market value, to remain range-bound over the near-term. Among the myriad issues facing bitcoin and other cryptocurrencies is adoption. As in when cryptos will become more widely accepted and used for mainstream activities, such as basic payments and money transfers, on a larger scale.
While traders often crave volatility, more stability for bitcoin could encourage investors that previously eschewed crypotcurrencies to reconsider the asset class.