Bitcoin's Trading Range Dropped Nearly 90% This Year, Analyst Says

  • A market analyst has claimed bitcoin's average trading range dropped nearly 90% so far this year.
  • Notably, the cryptocurrency has been trading within an uncharacteristically tight range.

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.

Bitcoin has been trading within a tight range for the last two weeks

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.

Derivatives Trading Platform Synthetix (SNX) Is up Over 5,000% Since 2019

Michael LaVere
  • Derivatives trading platform Synthetix is the best performing DeFi product since April 2019.
  • Synthetix's native token SNX has appreciated more than 5000 percent over the last two years. 

The little-known crypto-asset Synthetix (SNX) is the best performing decentralized finance (DeFi) project of the past two years. 

According to a tweet published by popular crypto analyst Alex Saunders, SNX has been the best performing DeFi asset since April 2019. Saunders claims that Synthetix has appreciated 5000% over the past two years and was one of the top two ETH-based projects he has been following since Edcon Sydney 2019. 

SNX’s price took off in June, from $0.79 at the start of the month to its current trading price of $2.73, representing a 245% increase. 

Synthetix is a derivatives trading platform built on the ethereum blockchain that allows users to trade on stocks, crypto and other commodities. Users are required to exchange bitcoin or ethereum for SNX tokens in order to participate in trading. 

The exchange’s native token can be locked as collateral to produce “synths” such as a synthetic U.S. dollar (sUSD), which in turn can be used to place bets on rising and falling asset prices. 

Synthetix also operates a reward program, where users of the exchange can stake their SNX tokens as collateral in order to receive additional benefits.

Featured Image Credit: Photo via Pixabay.com