Bitcoin’s Value Has Attained Exceptional Levels of Steadiness
Bitcoin's value has achieved remarkable levels of dependability from mid of October 2018 onwards to the present date. This is a sign of improvement from previous times when the performance was low. After some unpredictability amidst October, the cost of Bitcoin has subsided into a thin trading range between USD 6,350 and USD 6,500.
The day by day unpredictability of Bitcoin fell beneath USD 100 on 19th October and remains below that point as of October 26. This is the first instance when low volatility has been experienced in the market since April last year.
Bitcoin Experienced The Lowest Volatility In April Last Year.
The lowest volatility week was experienced in April of last year. The daily volatility was $33 but Bitcoin’s value represented close to 2.8% of the market volatility. However, a low volatility was witnessed from 19th October up to the 26th of the month.
The market information shows that the instability was at 0.86%. Thus, the present stability of Bitcoin’s value is unpredictable because of the daily price changes that range from 5-10%.
This constancy makes Bitcoin money more sustainable. Under usual situations when Bitcoin value was unstable, traders were forced to sell their stocks instead of holding them. It is because of the fear of losing their money should the prices of their stocks fall.
Currently, Bitcoin price is stable thus, the worry of holding Bitcoin has declined. As a result, traders do not have any fear about regarding the disposal of their assets instantly. Investors are optimistic that the prices of Bitcoin will remain stable for some time.
Though, the current levels of steadiness are not preferred by many day merchants. These people rely on volatility to make profits. Moreover, they are the ones who create this instability in the prices of stocks. For instance, some cryptos like BitMEX make huge profits when Bitcoin is crashing.
Lack Of Volatility Results in The Decrease Of BitMEX Daily Exchange
The absence of volatility led to the decline of BitMEX’s daily exchange capacity to less than $1billion. The amount was less than a half of the usual trading sizes. There was a day this year when BitMEX exchange had surpassed more than $8 billion. The present trading volumes have already dropped by 90%.
This soundness in the Bitcoin market could be a strong marker that the market base is here. It is likely that in the end, bitcoin's price will start to ascend off this base. Maybe the dispatch of physical bitcoin futures on Bakkt in December 2018. This will give the push that will begin the following Bitcoin rally.