Bitcoin, the flagship cryptocurrency, has mostly traded sideways in the last few days, as it has been holding on to the $3,650 level after seeing various sell-offs this year taking it to a low close to $3,500. This, as a Cboe analyst claims its volatility is on the rise.
According to CryptoCompare data, bitcoin is currently trading at about $3,645 after rising 0.1% in the last 24-hour period, and its market cap is at $64 billion. In the last two weeks, the flagship cryptocurrency has lost 3.6% of its value, as it endured sudden sell-offs that saw it drop from a high of $4,100.
The cryptocurrency closed last week in the red at about $3,550. The sell-offs this month have been attributed to BTC whales – holders with large amounts – selling their funds. This, as data suggests these have recently started resurfacing after not touching their holdings for between six months and two and a half years.
Bitcoin whales can significantly affect the cryptocurrency market, as large buy and sell orders can impact the market. Order book data on CryptoCompare shows an $18 million sell orders could drop bitcoin’s price by 10% on Bitfinex, one of the most liquid exchanges in the market.
As CryptoGlobe covered, a study conducted by China’s state-run financial publication National Business Daily (NBD) found that 0.7% of all BTC addresses control nearly 87% of the crypto’s supply, while 97.2% of addresses have less than 1 BTC in them.
Despite the potential of large buy and sell orders affecting the market, BTC has been relatively stable. Kevin Davitt, a senior instructor at the Chicago Board Options Exchange (CBOE), a regulated exchange trading bitcoin futures, noted that “volatility appears to be percolating, which is off-putting to most passive investors.”
Davitt, speaking to MarketWatch, added:
However, there are many market participants that understand volatility is a constant, and if volume numbers at Cboe are any indication, they are actively embracing the tools available to trade volatility and/or manage risk.
On Twitter, a cryptocurrency analyst with a large following going by Don Alt noted that bitcoin has been trading close to the bottom of its range, but is set to keep on trading around $3,380 and $3,700 until the support breaks.
$BTC not so daily update:
Chilling in the lower part of the current trading range after having put in a few consecutive lower highs.
As long as we stay below the POC I'll most likely stay hedged.
I'm personally not interested in trading this trading range.
R: ~3700 pic.twitter.com/9Oo78Dkl8e
— DonAlt (@CryptoDonAlt) January 16, 2019
Top altcoins are seeing mixed results. While Ethereum, XRP, BCH, and Zcash have all seen their prices drop in the last 24-hour period, Litecoin and TRON’s TRX token have been on the rise. Brave’s BAT has notably risen 3.2% in said period, as the browser is reportedly set to start rewarding users for seeing ads soon.