Bitcoin Price Manipulation Rumours Start To Fade As Volatility Continues To Drop
Bitcoin's recent price stability could be a positive sign as it may convince regulators and lawmakers that Bitcoin is ready to fulfill some of the promises it has been touted for.
Bitcoin’s recent price stability could be a positive sign as it may convince regulators and lawmakers that Bitcoin is ready to fulfill some of the promises it has been touted for.
Bitcoin price volatility drops to a 2-year low
Data compiled by U.S.-based asset manager Blockforce Capital shows that both Bitcoin volatility and 30-minute spread are at year-to-date lows.
Bitcoin’s volatility index over the past month currently stands at 1.73 percent, while 60-day estimates currently stand at 2.58 percent.
The drop in volatility is seen as good news for both legislators and regulators, as it could imply that price manipulation is no longer an issue for the cryptocurrency. Bitcoin’s volatility has been named as one of the major contributing factors to the risk of the investment.
Bitcoin has also been touted as a potential replacement for gold, however, this cannot be achieved if the cryptocurrency fails to mirror the stability of the price of precious metals.
The report by Blockforce Capital indicates that volatility has been trending downward since the middle of last month, with today’s average volatility of 0.404 being the lowest it has been since the start of the year.
Mason further added that Bitcoin is no longer speculative:
After wild swings and rollercoaster rides, Bitcoin looks to have settled into a long-term relationship with its investors, who are not speculating their days away and appear to be in it for the long haul.
There have been numerous Bitcoin ETF proposals submitted to the U.S SEC but the regulators have so far rejected all of them.
The SEC rejected the ETF proposals based on the belief that the Bitcoin market is inadequately regulated and thus still prone to price manipulation. Regulators learned that the low trading volume on the Gemini exchange may be exploited to artificially manipulate the price of Bitcoin.”
With low volatility comes more positive regulation
The low volatility of Bitcoin has started to imbue regulators with confidence that the cryptocurrency market could balloon to record heights.
SEC Chairman Jay Clayton recently told a Senate banking committee that Bitcoin is no longer as volatile as some may believe it to be, arguing that the cryptocurrency is now comparable to other securities.