'Crypto-silence' as Bitcoin bottoms out
INTERNATIONAL – Bitcoin’s going through a serious quiet spell. The world’s largest digital currency is seeing fewer major price swings and low volatility, signs that the coin may be nearing a bottom.
This month, Bitcoin has had only one day with a move of 5 percent or more, compared with nine in January and February.
The low volatility is "a sign of speculation leaving the market and eventually a bottoming process," said Bloomberg Intelligence analyst Mike McGlone. "High volatility is a major factor lessening most cryptocurrency use cases for anything other than speculation."
Charlie Morris, multi-asset head at Atlantic House Fund Management in London, echoed that sentiment. "It simply means the market is calm and in balance. That implies that speculative interest is low," he said in an email. "Given this bear market is now 10 months old and is getting tired, I’d be inclined to be bullish for the next major move.”
The price of Bitcoin has dropped more than 50 percent this year. It has hovered around $6 300 (R92 000) this month, down from a high of $19 511 in mid-December. The digital token last crossed the $6 000 level in mid-August and hasn’t closed under that price since June.
“The current Bitcoin market is relatively stable," said Danial Daychopan, chief executive officer of Plutus, an app that allows crypto transactions. "The cost of the emotional traders has been washed away by the recent crash, and with it a lot of the volatility."