Bitcoin prices have been fluctuating within a reasonably tight range in recent weeks.
Compared to earlier this year, the cryptocurrency’s volatility has fallen sharply, according to Bloomberg data compiled by U.S.-based asset manager Blockforce Capital.
“Both BTC volatility and spread between high and low prices at 30 min intervals are at year-to-date lows,” noted Eric Ervin, CEO of Blockforce Capital.
He added that this “volatility has been trending downward since the middle of September, with the average volatility reading today (0.404) being the lowest its been all year.”
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
‘Wait And See’ Mode
When explaining what was driving this low volatility, several analysts offered a consensus viewpoint.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, emphasized Bitcoin‘s tight price range, adding that the digital currency has failed to experience “any drastic changes in volume.”
“Traders are in a ‘wait and see’ mode,” he concluded.
Tim Enneking, managing director of cryptocurrency fund manager Digital Capital Management, agreed with this point of view.
“We’re definitely in ‘wait and see’ mode,” he stated.
Enneking emphasized that the modest volatility has extended to alternative protocol assets (altcoins).
“There has been more volatility in the alts, but it’s still lower than usual (based on this year) — the recent big jumps in XRP and BCH aside.”
Push And Pull
The broader digital currency space has been affected by conflicting forces, claimed Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare.
He emphasized that negative sentiment has been overshadowing the space, but that this situation has been counterbalanced by “positive news regarding the involvement of financial institutions.”
Over the coming months, the markets could experience a sea change, said DiPasquale, as many traders are “optimistic” that prices will push higher.