Bitcoin, which has been suffering from relative stagnation in recent weeks, saw a key measure of volatility fall to its lowest in roughly four months today.
The digital currency’s 30-day volatility, calculated using price data from various exchanges, reached 53.5%, according to research from asset manager Blockforce Capital.
At this point, 30-day volatility was at its lowest since May 11th, when the cryptocurrency was trading close to $7,000.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin volatility fell to this level at a time when the digital currency has spent several weeks trading primarily between $10,000 and $11,000, CoinDesk data shows.
The cryptocurrency spent much of August moving within this range, and September has thus far been even calmer, with the digital asset trading between $10,000 and $11,000 every day except the first of the month.
David Martin, chief investment officer at U.S. asset manager Blockforce Capital, weighed in on these developments:
“So far in September, bitcoin’s price has continued the consolidation and range-bound nature that was kicked off early August.”
“As of this morning, bitcoin’s volatility is now at a four-month low of 53.5%, a level not seen since May 11th,” he added.
Calm Before The Storm
The relative malaise that bitcoin markets have been experiencing lately may simply be the calm before the storm, however.
Several analysts have emphasized bitcoin’s strong fundamentals, emphasizing that bitcoin’s range-bound trading fails to reflect these underlying factors.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, offered a bullish take on this situation, stating that it “bodes well for future valuations.”
However, he emphasized that bitcoin has been stuck within a consolidation phase.
To drew new interest from retail investors and experience strong price appreciation, the digital currency will need to break out of this phase.