Bitcoin Maintains $3,650 Level as Cboe Analyst Claims Volatility Is Rising

Francisco Memoria

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.

Bitcoin's price performance in the last 24-hour period

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.

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.