There was a nervous moment for Bitcoin yesterday as North America started Monday trading when intense profit-taking took the world’s biggest cryptocurrency for a ride down, shedding almost USD 300 to test USD 10,000 support levels.
For 3 and a half hours, price threatened at a low of USD 10,093, before finally leading upwards back above USD 10,200, where it has been trading at during Asian market hours on Tuesday. The mood does not appear to be picking up in Europe, however, as both volume and price appears to be trickling down. It is still a relief for bulls, however, as price is less than 1% down from this time yesterday (8:10 am UTC, CoinDesk).
— Mike the Bitcoin Bot (@bitstreetbets) September 17, 2019
Amid that minor stumble for Bitcoin, altcoins look to continue their charge from yesterday, with Ether price now a whisker of USD 200, while others like Litecoin, Ripple and EOS are enjoying new monthly highs as well. Even the much-maligned Bitcoin Cash is enjoying another day in the USD 300 range.
The world of Bitcoin speculation is never one known to be dull, and our daily analysis is never wanting in clue and hints that drive the public sentiment behind price action. This time, we begin at the volatility of Bitcoin. Often criticized by its detractors, Bitcoin volatility has apparently dropped to its lowest since May, over four months ago.
According to research from asset fund manager Blockforce Capital, a 47% reading on a 30-day volatility index also corresponds with a 54% reading on the 60-day volatility. Showing the numbers on its show, the firm also shows that if the trend continues, it could even reach low levels not since March and early April 2019. This period, if you recall, was when the Bitcoin bull of 2019 began in earnest.
Managing director of Digital Capital Management Tim Enneking believes that the lowest levels of volatility Bitcoin is experiencing in many months is a clear sign that the digital asset was consolidating. He added:
“Interestingly, it has been consolidating recently in the upper half of the ever-narrowing pennant it’s been stuck in since the early June 2019 peak. This is the first time that’s happened in over three months.”
At least one commentator believes that the planned launch of the long awaited physically-backed Bitcoin futures by Bakkt on 23 September next Monday is part of the reason. BitBull Capital’s CEO Joe DiPasquale said the consolidation is typical with tighter spreads happening around the weekend (and as we reported also yesterday) was a sign of a big move in preparation. DiPasquale simply believes that investors are waiting to pounce, though we should “expect this to change around events, and the volatility to increase as those events affect.”
But rich whales aren’t the only ones waiting, it seems! Michelmores LLP, a legal firm in London, claims that one-fifth of all wealthy millennials in the United Kingdom have invested in Bitcoin and other crypto. FXStree reports today that these millennials, aged today between 23 and 38 years olds who had investable assets totalling GBP 25,000 (USD 31,000) or more, had put money into Bitcoin or crypto.
Interestingly, this is 7 times higher than the national average, suggesting that the same age group were more willing to invest in this new form of digital currency. The wealthier they were, the more they invested; 1 in 3 of those earning GBP 75,000 (USD 93,000) or more put money into crypto.
Most seem to be saving up as well, with 70% of respondents saying it was salaries that funded their investable wealth, while 40% said that they reinvested returns from other investments intro crypto.
And if that’s not enough to cause younger people to be more attracted to Bitcoin, then the latest revelations about the largest bank in the US and its role in market fraud emerged.
As reported by Bloomberg, JPMorgan Chase is facing an inquiry regarding the actions of at least 12 precious metals traders under its employ. They are accused of knowingly and willfully fixing the price of gold and other precious metals on thousands of occasions, leading to losses on both market participants and JPMorgan clients.
JP Morgan traders accused of manipulating price of gold, silver for a DECADE, as DoJ tries to look tough on Wall Street https://t.co/nkQ6BdLlE7
— RT (@RT_com) September 16, 2019
Assistant Attorney General Brian Benczkowski spoke of “widespread conduct” on JPMorgan’s trading desk involving “thousands of episodes” over eight years. He vowed:
“We’re going to follow the facts wherever they lead, whether it’s across desks here or at any other bank or upwards into the financial institution.”
In an age where public trust in the state and banking institutions is already at an all-time low, will this see interest in trustless systems like Bitcoin work?
Image Courtesy: Pixabay