Bitcoin holds $7,000; volatility trends lower
Story by: AARON HANKIN
Bitcoin and other digital currencies are trading higher Tuesday, looking to recover some of last week’s losses that saw the total value of all cryptocurrencies fall by more than $60 billion.
After slipping near the $7,000 support level late Monday, the No. 1 digital currencyBTCUSD, +2.87% is higher Tuesday, last trading at $7,409.85, up 3.6% from 5 p.m. Eastern levels on the Kraken exchange on Monday.
Bitcoin traded Monday at a low of $7,081.25, its lowest level since April 11.
Read: Why a collapse in bitcoin won’t kill blockchain
Volatility on the slide
Although May has been a torrid month for cryptocurrencies, proponents note the overall downward trend in volatility is a bright spot for widespread adoption.
Charles Hayter, co-founder of CryptoCompare, said the extraordinary price targets for bitcoin set by the likes of John McAfee and Jamie Dimon aren’t helping the credibility of the cryptocurrency market. Moreover, while volatility is great for traders, it impedes mainstream adoption.
Cboe data shows that despite last week’s pop in volatility, the trend is heading south.
Cboe“From a volatility standpoint, the overall trend is certainly lower, but in contradiction to that trend, last week was the most volatile for lead-month futures since the middle of April,” wrote Peter Lusk, senior instructor for The Options Institute at the Cboe.
“Since the start of trading of the futures at Cboe in December, the average weekly XBT volatility has been 21.7% (through May 18). However, since the middle of March, volatility has run below that average, showing a downward trend.”
Original story: https://www.marketwatch.com/story/bitcoin-holds-7000-volatility-trends-lower-2018-05-29
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