Bitcoin dropped below $10,000 on Wednesday, but overall, the leading cryptocurrency has been exhibiting signs of less volatility, which counters the market oscillations that investors have been experiencing in the equities markets. These steady market movements could help spur more crypto funds in the future.
Bitcoin’s price volatility has dropped to its lowest level since the month of June. Social media giant Facebook and it’s “Libra” project brought some interest back in cryptoassets like Bitcoin, which shot up its price this summer.
Since then, however, Bitcion’s 30-day volatility fell to a reading of 64 last weekend, according to figures provided by Blockforce Capital and Digital Asset Data.
“Bitcoin went on a tear to the upside from April to the end of June, but since then the price has been consolidating and rangebound,” said David Martin, chief investment officer at U.S. asset manager Blockforce Capital.
Bitcoin’s price has, for the most part, remained within the $10,000 price range.
“Bitcoin is in a consolidation phase after the late June rally which took it close to $14,000,” said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital. ”Since then, the price is rangebound and trading volumes are low compared to the period between May – June. We attribute this to lack of retail investor participation and new money flow.”
However, the recent move below $10,000 could be a sign that declines could be ahead.
“Since Bitcoin has not definitively surpassed the $10,000 psychological barrier, we believe investors have adopted a wait and watch approach, as a breakdown below $10,000 can see the price plummet swiftly,” added DiPasquale.
If the price regains its footing within the $10,000 range again, it could bring more interest in the form of crypto funds. Investors who are hesitant to jump into cryptoassets may see the lower price volatility as a more favorable option to equities.
Per a report in Coin Telegraph, “interest in crypto funds is on the rise, according to one startup that enables users to create their own funds or follow those that have been established by others. Tokenbox says blockchain technology and smart contracts make sense for those who either want to invest in cryptocurrencies or tokenized versions of real-world assets, such as precious metals. Decentralization could pave the way for all parties to enjoy greater transparency and lower costs, while substantially simplifying record keeping and reducing the risk of falsification.”
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