A measure of Bitcoin volatility reached a more-than two-month low today, offering the latest evidence of the digital currency’s malaise.
The cryptocurrency’s rolling 14-day volatility declined to a reading of 40, its lowest since mid-November, according to data provided by U.S. asset manager Blockforce Capital.
This compared to a reading of 100 at the start of 2019 and 85 four weeks ago, additional Blockforce Capital figures reveal.
[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.]
The chart below provides a graphic representation of these changes in volatility:
Bitcoin’s Range-Bound Trading
Bitcoin prices have been trading within a relatively modest range lately, fluctuating primarily between $3,500 and $4,000 so far in 2019, according to CoinDesk price data.
This contrasts with times of sharp volatility, for example last year, when Bitcoin climbed from less than $1,000 to almost $20,000, additional CoinDesk figures show.
“Bitcoin has been consolidating around $3500 since the sharp drop in November,” observed Jon Pearlstone, publisher of the newsletter CryptoPatterns.
He emphasized that before suffering that decline, the digital currency held the $6,000 level for more than six months.
Some market observers prefer higher volatility, as more significant price fluctuations create greater opportunity for traders to earn a profit.
However, there is a flip side to this coin.
Critics have highlighted Bitcoin‘s intense volatility, stating that its sharp price fluctuations make it less useful as a medium of exchange.
The cryptocurrency’s recent malaise has thrown cold water on this argument by enabling its use as a medium of exchange.