Mar 27, 2019

Monthly trading range of bitcoin is lowest ever

Monthly trading range of bitcoin is lowest ever, could help attract investors…

It’s hardly been a secret that the cryptocurrency market has been a volatile one since it hit investor awareness in a big way towards the end of 2017. That very volatility attracted hordes of investors when digital currencies were going parabolic at that point.

But since blockchain-based currencies, led by bitcoin, have come crashing down from their former astronomical levels, many investors have just stayed away from crypto, concerned with trading-range swings that have often been 10% and higher per day.

But there has been a change in the trading profile of bitcoin, and the world’s leading crypto by market cap is now seeing the lowest levels of volatility that it has ever had.

If the current 7.8% trading range for bitcoin remains intact through the rest of the week, it would mark March as the month with the lowest trading range for the crypto since it was first traded.

Just as a point of comparison, the previous slimmest monthly trading range for bitcoin since 2017 was 21.2%. That’s a pretty big range, but not when you consider that the average monthly range has been a staggering 54% dating back to October 2013.

The high levels of volatility in bitcoin and alt-coins have kept investors from participating in trading crypto, according to well-known economist Nouriel Roubini. Roubini stresses that it has been the chief reason that digital assets have failed to be adopted by both Wall Street and Main Street.

However, while relatively tight trading ranges and related lower vol levels could be enticing new investors to come on board, one industry player suggests the reduced volatility in the crypto market won’t last.

Marty Bent, who hosts the popular Tales from the Crypt podcast, suggests that “it is asinine to believe that bitcoin will come out of the box (even a decade later) with no volatility, perfect scalability, and sufficient decentralization.”

Bitcoin is trading at $4,009, up 2.4% so far during Wednesday’s session.