The silence that has been around bitcoin may be an indicator that the digital currency’s price may finally be near its bottom. There have been fewer price swings and less volatility in recent months. For instance, this month there was only one day when Bitcoin moved 5 percent compared to nine days in January and February.
According to Bloomberg intelligence Mike McGlone, this low volatility is a sign that speculators are leaving the market and thus Bitcoin is bottoming out. However the lack of volatility is a positive development because wild price swings otherwise render the cryptocurrency useless for anything other than speculation.
The Bitcoin market is definitely showing signs of calmness and that it is in balance. The price of Bitcoin has dropped more than 50 percent this year alone. It has been floating around R92,000 this month and hasn’t closed under that price since August. But after 10 months of a bear market, there is also a high probability that the market could turn bullish soon.
