Bitcoin has fallen to its lowest volatility level in more than 18 months which is a good sign for the market overall as many believe the reasons for the lower volatility is there is now less manipulation in the market.
This factor has kept many traders on the sidelines and afraid of investing in bitcoin with fear that only a few insiders with real knowledge of the Crypto currency market were making all the money.
"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.
"Volatility has been trending downward since the middle of September, with the average volatility reading today (0.404) being the lowest it’s been all year." He added.
Declining volatility is usually a welcoming sign for mainstream investors who do not like or are not used to such wild swings in their investments and as the bitcoin market continues to mature, we may see more interest and therefore higher prices.
"This is a maturing market, so volatility should continue to decline," said Mike McGlone, Bloomberg Intelligence commodity strategist.
"When you have a new market, it will be highly volatile until it establishes itself. There are more participants, more derivatives, more ways of trading, hedging and arbitraging." He added.
There are rumors that the SEC (Securities and Exchange Commission) are asking for additional information on the recently rejected Bitcoin ETF applications which has led to speculation that they may be in the process of approving and idea to regulate the Bitcoin market.
If the rumors are true, this is likely to bring some of the big money such as investment banks into Bitcoin and take it into the realm of mainstream investments.
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