During the last few days, there has been major bearish pressure in the market with stocks shedding gains dramatically. One shocking thing that happened is that the price Bitcoin, the largest cryptocurrency per market capitalization, remained stable throughout this time. This is surprising because Bitcoin (BTC) typically takes a hit anytime the stock market takes a hit. The traditional stock market is plummeting. Bitcoin (BTC) has stayed within the $6500 range for the past few days. On a weekly basis, BTC is up by 1%. The stock market, on the other hand, is down by 3%.
Analysts can’t figure out why the price of Bitcoin isn’t suffering along with the traditional stock market as it typically does. At the beginning of October, up to $18 billion out of Bitcoin’s market capitalization was lost within days due to a major sell-off in the stock market. This week, however, the case was different. The cryptocurrency market did not react to the fall in the stock market.
Bitcoin (BTC) Price Today – BTC / USD
Dow Jones Industrial Average closed Thursday trading 500 points higher. On Friday, it lost the 500 points. Before the end of Friday’s trading session, some of the lost points were recovered. The sell-off in the Dow market is possibly due to the rumors of a trade war and the ever rising interest rate.
Bitcoin (BTC) Volatility Drops
Bitcoin has always had a high volatility. However, things seem to be changing in recent times. Between December 2017 and now, the price of BTC has fallen by over 65%. Even at this, the yearly stats show that Bitcoin is still trading higher by 14%. While Bitcoin is a more efficient form of money, the price volatility is what prevented it from being a viable option in the sector. This volatility also made it a bad option for storing value earlier this year.
After staying at its all time high for a while, the price of Bitcoin fell by over 33% within a 48 hour period. Within 24 hours, it feel from $9000 to $6000. The good news is that the price volatility is becoming lower as time goes by. Within this month of October, there was only one day when Bitcoin fell by more than 5% within a 24 hour period.
As Bitcoin maintained relative stability, other cryptocurrencies followed suit. Ether was trading higher by 0.2% at the time of writing while XRP was higher by 0.4%. If the volatility continues to drop, more institutional investors will be interested in Bitcoin and this will have a ripple effect on the entire industry. Already, preparations are being made to welcome these institutional investors to the cryptocurrency market. Not too long ago, CoinBase, one of the leading exchanges in the world enabled custody services that will invite more institutional investors to the market. Fidelity also launched their custody solutions a few weeks ago.