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.

E-Commerce Giant Shopify Joins Libra Association in Bid to ‘Improve Commerce’

Francisco Memoria

Shopify, a Canada-based e-commerce giant that has reportedly helped over 1 million businesses launch their own stores, has joined the Facebook-led Libra Association.

According to a blog post the company published,  Shopify has now become a member of the Libra Association and will work to “built a payment network that makes money easier to access and supports merchants and consumers everywhere.”

The blog post reads:

We’re excited to be part of the Libra Association and look forward to how the project may improve commerce everywhere.

In the announcement Shopify also notes its mission is to “make commerce better for everyone” and that, to do that, it spends time looking into how it can improve it in parts of the world where money and banking “could be far better.”

At the beginning of the post, Shopify makes it clear that as online commerce keeps growing it’s easy to forget “payments and the value exchange of goods are not a solved problem.” IT adds that much of the financial infrastructure in the world “was not built to handle the scale and needs of internet commerce.”

Notably, Shopify itself doesn’t offer direct support for cryptocurrency payments, but its merchants can enable them via alternative payment methods through services like BitPay, Coinbase Commerce, and CoinPayments Beta.

Since launch, the Libra Association has been criticized by regulators and policymakers throughout the world, with some passing blockchain strategy that would block the Libra currency. The Libra Association has lost eight of its founding members so far, including Visa, eBay, PayPal, Mastercard, and Vodafone, with Shopify being the first organization to join it.

Featured image by Anete Lūsiņa on Unsplash.