Bitcoin’s average trading range has narrowed nearly 90%, says analyst

Major digital currency prices cannot buck the recent trend, trading mostly unchanged.

In Thursday trading, one bitcoin BTCUSD, +0.49% was fetching $6,331.63, up 0.2% since Wednesday 5 p.m. Eastern Time on the Kraken crypto exchange.

The lull has analysts turning to stocks to cure their craving for volatility. “The average true trading range of bitcoin has dropped to $157 from its January peak of $1,500. Its historical volatility has also dropped so low that stocks like Amazon and Apple are more attractive,” wrote Naeem Aslam, chief market analyst at Think Markets U.K.

The move from $1,550 to $157 represents a fall of 89.5%.

Furthermore, Aslam said as bitcoin inches toward downside support, a move to the 2018 low becomes a real possibility: “The price of bitcoin is moving towards a critical support level of $6,100 and a break of this is going to open the floor towards the $5,717 mark.”

Institutional inflows on the rise, says Grayscale Investments

Despite the 2018 fall in digital currency prices, institutional investors haven’t blinked. According to Grayscale Investments, a subsidiary of Digital Currency Group, it received more than $80 million of funds in the third-quarter of 2018, led by institutional flows.

Just as we saw in the first half of the year, the majority of capital this quarter came from institutional investors. This group’s share of new investment increased to 70% in Q3, though the dollar-value invested was lower than in the two previous quarters,” Grayscale said in its Q3 report.

Inflows for the year reached $329.5 million, according to the report.

What are the smaller coins doing?

Coins other than bitcoin, which are smaller in market value and are collectively known as altcoins, were mostly unchanged Thursday. Ether ETHUSD, +1.20% was up 0.2% at $196.87, Bitcoin Cash BCHUSD, +7.13% was off 0.6% at $421.50, Litecoin Grayscale LTCUSD, +2.49% had gained 0.4% at $49.89 and XRP, XRPUSD, +1.28% was up 0.6% at 45 cents.

Bitcoin futures finished Thursday marginally higher. The Cboe Global Markets November contract XBTX8, +0.75% closed up 0.3% at $6,312.50, while the CME Group November contract US:BTCV8 finished the session at $6,315, up 0.3%

 

/marketwatch.com

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