Bitcoin is registering an unprecedented stability in recent times. Since the beginning of September, Bitcoin is being traded between $6,200 and $6,800 dollars without experiencing wide fluctuations on its price.
At the time of writing, Bitcoin is being traded close to $6,486 dollars and it has just registered an increase in the last 24 hours of 0.55%. Additionally, the top 14 virtual currencies by market capitalization are registering movements (positive and negative) smaller than 0.88%.
However, the same is not happening in the equity markets where most stocks are experiencing an increased volatility. This was exactly the opposite of what happened during 2017. The last days, have been very moved for the DJIA and the S&P 500, earing the gains made during 2018.
The cryptocurrency market is not commonly operating stably. This, however, has attracted several crypto proponents saying that there is a nascent technology that could be embraced by portfolio managers.
Mati Greenspan, a senior market analyst at eToro, commented:
“The fact that the current stock market rout has not had any effect whatsoever (positive or negative) on the crypto assets is an extremely positive sign. This is a prime example of how crypto’s are uncorrelated and it only serves to increase their use case as a powerful tool for asset management.”
Additionally, in the last ten days, Bitcoin has been traded between $6,500 and $6,300. This affected the 30-day volatility index volume that plummeted under 2% from 8% at the beginning of the year.
According to Bloomberg, this calm in the crypto market might be related to the fact that speculative traders are leaving the market. Developers continue to work in order to provide new solutions to the crypto community and to improve the current blockchain systems. With a reduction of volatility and speculation, could have a very positive impact in the space.