The volatility of bitcoin has fallen to a new low, according to both charts and analysts alike. Overall, the currency’s volatility has dropped to its lowest point in 23 months and has fallen by approximately 43 percent over the past week.
Bitcoin Volatility Reaches a New Bottom
The data is there in that all one needs to really do is look at the present price of bitcoin and its recent patterns. For one thing, the currency has remained above $10,400 for the past several days. $10,400 was something of a pivotal point in that the asset had fallen to this level after trading for over $12,000 by the time late August had come around. The currency lost as much as $2,000 off its 2020 high point.
However, the past few weeks have suggested that bitcoin has found a comfortable spot – at least for the time being – around $10,600. It’s been here for some time and doesn’t appear to be moving much as of late. This is also great news in the fact that the asset has been hit with all kinds of bearish news but doesn’t appear to have shifted much, suggesting the low volatility.
Perhaps the most negative news to occur all week was that President Donald Trump had been struck with the coronavirus and had fallen into ill health following the diagnosis. After testing positive, the President was beginning to show mild symptoms such as a light fever, and he was later taken to a nearby hospital for treatment. However, news has stemmed that the President will be leaving the medical facility within the next day or two.
Still, while Trump has been doing well and showing improvement, the news was likely to put both citizens and markets on edge in many ways. However, throughout this crisis, bitcoin has managed to retain its position on the financial ladder. The currency did not move from where it is. It hasn’t fallen, and it continued to show great resilience as people waited on the edge of their seats for an update regarding the President.
So Much Ugly News!
Bitcoin also showed great strength despite news that BitMEX – one of the largest and most popular cryptocurrency exchanges in the world – was being indicted on federal charges of money laundering and financial fraud. It is believed by legal authorities that the trading platform engaged in illicit transactions and provided financial data and crypto services to countries and citizens under sanction such as Iran.
At the time of writing, BitMEX is denying all claims that it engaged in any illegal behavior and has vowed to fight the charges. Either way, this could have easily been a huge blow to bitcoin, but the fact that it’s held its ground is more proof that volatility is at a standstill and bitcoin is likely reaching a new level of maturity.