As Bitcoin volatility hits its lowest of this year, it is expected a wild swing is on the way. Industry participants share it is a sign of a maturing market and that as traders are in a wait and see mode, in coming times insane volatility is a possibility.
Bitcoin volatility hits 2018’s lows
According to Crypto Yoda, insane Bitcoin volatility can be expected to enter the market in the coming days. He took to Twitter to share his finding along with a final structure for Bitcoin:
— CryptoYoda (@CryptoYoda1338) October 8, 2018
Well, people are hoping for a bullish scenario as shared by one Twitter user, “Fingers crossed to the bullish side.”
With Bitcoin hitting its 17-month low due to low trading volume, experts and investors are believing it to be a sign of a maturing market. As pointed out by Gil Luria, the director of research at D.A. Davidson & Co.,
“Volatility and volumes are two sides of the same coin. When speculators are involved, they drive unusually high volumes as well as volatility by trading the asset with high frequency. As speculator involvement is diminished, volumes go down and volatility goes down as well.”
Ranging between $6,200 and $6,800, the leading cryptocurrency is maintaining stability since last month. “Both BTC volatility and spread between high and low prices at 30 min intervals are at year-to-date lows,” says Eric Ervin, the CEO of Blockforce Capital.
Low volatility sign of a maturing market, good times ahead?
Nigel Green, the founder of deVere Group shares that price stability could “be a signal that the cryptocurrency market is maturing.”
The similar sentiments are shared by Mike McGlone, Intelligence commodity strategist at Bloomberg as he states as market rapidly matures, the price volatility will decline with the entry of more Bitcoin-related products. He further added,
“This is a maturing market, so volatility should continue to decline. 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.”
According to the co-founder and CEO of CryptoCompare, conflicting forces have been affecting the entire crypto market and negative sentiment has also been overshadowing it but has been balanced by the entry of financial institutions.
Now, in the coming months, DiPasquale, the CEO of crypto fund of hedge funds BitBull Capital shared with Forbes, Bitcoin has failed to experience “any drastic changes in volume,” as traders are in a wait and see mode. But the market could see a sea change as traders are optimistic that prices are gonna go higher.