Bitcoin, the flagship cryptocurrency, has been trading within a tight range for the last few weeks, as it’s seemingly unable to buck the current trend it’s going through, despite seeing various developments unfold.
Naeem Aslam, chief market analyst at Think Markets UK, reportedly told MarketWatch the volatility has dropped so much BTC is now less volatile than some stocks, making it less attractive for traders. He said
The average true trading range of bitcoin has dropped to $157 from its January peak of $1,500. Its historical volatility has also dropped so low that stocks like Amazon and Apple are more attractive.
The drop Aslam pointed out, from a $1,500 to a $157 trading range, represents a difference of over 89%. As CryptoGlobe covered, the cryptocurrency’s volatility recently fell to lows it hadn’t seen since December of 2016, as its 30-day volatility index dropped to 1.42%, down from an 8% high.
The analyst added that as bitcoin’s price comes close to the “critical support level of $6,100,” it may soon start retesting this year’s low slightly below the $6,000 mark. So far this year, bitcoin has bounced off of this year’s low point numerous times, leading many to believe it has bottomed out.
Tom Lee, the founder of Fundstrat Global Advisors and a well-known bitcoin bull, has recently revealed he was “pleasantly surprised” by the cryptocurrency’s low volatility at a time in which the stock market became volatile. Per Lee, BTC found a floor at $6,000.
As MarketWatch pointed out Grayscale Investments, in its Q3 report, recently revealed institutional investors are still entering the crypto space, despite the 11-month long bear market it has been enduring.
The firm revealed it received over $80 million of funds led by institutional investors in the third quarter of this year. The report reads that just like in the first half of the year, the “majority of capital this quarter came from institutional investors. This group’s share of new investment increased to 70% in Q3, though the dollar-value invested was lower than in the two previous quarters.”
Despite the increasing interest, bitcoin itself is still within its tight range. According to CryptoCompare, it’s currently trading at $6,390 after rising 0.80% in the last 24-hour period.
Most top altcoins are currently in the green. Zcash, EOS, litecoin, and XRP have all recorded gains between 1.14% and 1.85%, while Ethereum Classic (ETC), dash, and bitcoin cash, and monero have all risen less than 1%.
NEO notably stands out, as it’s up little over 4% in the last 24-hour period. It’s currently trading at $16.07. Behind its move could be the imminent launch of a new decentralized exchange on its network, or a community effort to grow the crypto in Latin America.