Bitcoin Volatility Uncharacteristically Low: What’s Causing the Lack of Excitement?

The Bitcoin price has become relatively stable over the last few weeks. In fact, according to Buy Bitcoin Worldwide, the 30-day volatility index for BTC is now at 2.55% — the lowest since July.

What does this drop in volatility mean for Bitcoin? Could it serve as a driver for further merchant adoption or is it simply reflective of a shift in the attitudes of traders?

Is Bitcoin’s Low Volatility Simply a Case of Bored Traders?

Whether you are a seasoned Bitcoiner or have only heard about the number one digital asset from a few mainstream news articles, you are bound to know about its volatility. Massive price swings in either direction are common. This has made it a highly lucrative asset to trade – providing you know what you are doing.

However, recently volatility has been dropping. According to a Tweet by self-proclaimed Bitcoin enthusiast Alec Ziupsnys, the swings in Bitcoin price have been declining over the years:

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This is supported by research conducted by Buy Bitcoin Worldwide and reported by Market Watch. The publication provided speculation about the reasoning behind such declining volatility from Elements Digital Asset Management.

In a write up focused on Bitcoin’s volatility, Elements portfolio director, Thejas Nalval, and director of quantitative research Kevin Lu stated that it was too premature to claim that the market was adopting Bitcoin as a store-of-value and thus there was less buying and selling pressure to create Bitcoin price swings. The pair also rejected the notion that transparency and increased market efficiency had caused the drop.

Instead, they favoured a rather less exciting narrative:

“We’re a bit more sceptical. We think the market has quite simply just run out of juice for now. It’s almost become boring.”

This makes a lot of sense. Many amateur traders have likely fled the market after suffering losses as a result of the ongoing bear market. Whilst those that have been successful at trading Bitcoin are likely still looking for opportunities to trade, the lack of “dumb money” creating the massive market shifts seen previously will have prompted many to explore other markets too.

Recent big news events have barely impacted the price of Bitcoin at all. This shows that there is less money prepared to move in and out of the market based on short-term events – the kind of emotional trading decisions made by non-professional market participants.

Could Low Bitcoin Volatility Drive Adoption?

One of the biggest hurdles for merchant adoption of Bitcoin has always been the volatility of the currency. Retailers and customers alike do not enjoy the idea of overpaying or undercharging for an item in the time it takes a transaction to process. Therefore, it figures that lower volatility should encourage more retailers to accept the number one digital currency, right?

Well, maybe. It is certainly true that many merchants and customers would prefer to see Bitcoin at stable prices before they are prepared to use the digital asset as a medium of exchange.

However, it is important to remember that we are still in the very early days of this experiment in decentralised finance. For the kind of stability in prices needed for all merchants and customers to be happy using Bitcoin for everyday purchases, the market would need to be many orders of magnitude bigger than it is today. Essentially, the volatility would need to drop as a result of the sheer size of the market, rather than traders simply finding other markets to profit from.

People across the globe still want to make money trading. As soon as the Bitcoin market moves in one direction or another, there will be traders ready to take advantage of the swings once again. This will create new volatility and as the market becomes “exciting” once again, more will come to try their hand at buying and selling Bitcoin. This creates a sort of feedback loop as the more trying to make cash through trading means the greater the volatility will be – until the market reaches such colossal proportions that traders buying and selling the asset has little impact on the price. When or more accurately if this occurs, the price of Bitcoin would be higher than many but the most bullish today could possibly imagine.

 

Related Reading: Analyst: Bitcoin (BTC) May be Gearing up for a Large Price Move as Volatility Plunges

Featured Image from Shutterstock.

The post Bitcoin Volatility Uncharacteristically Low: What’s Causing the Lack of Excitement? appeared first on NewsBTC.

Bitcoin Volatility Uncharacteristically Low: What’s Causing the Lack of Excitement?

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

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Bitcoin Price (BTC) Undervalued By Nearly $34K According to Infamous Dickline

Bitcoin’s recent bullish rally has helped the leading crypto asset return to mean after $6K support was penetrated by bears. Given its potential, it’s clear to see that Bitcoin is currently undervalued by most analyst’s standards. Bitcoin price predictions place the number one crypto by market cap in the hundreds of thousands, with some estimates reaching a staggering $1 million USD.

Such an estimate was made my the eccentric cyber security expert turned crypto influencer John McAfee, who offered to eat his own “dick on national television” if his prediction didn’t come true by the end of the year 2020. Since that bold claim was made, the crypto community has been watching Bitcoin price closely, tracking it in accordance with the McAfee “dickline.”  According to the infamous “dickline,” Bitcoin is currently nearly $34K undervalued.

Bitcoin Falling Short of Dickline Trajectory to McAfee’s $1M Prediction

Back in July of 2017 before Bitcoin price truly went parabolic, founder of anti-virus pioneer McAfee Labs, John McAfee, made a claim that it would reach $500,000 per BTC “within three years.” He later revised his estimate based on a new prediction model due to how quickly the cryptocurrency’s value skyrocketed, and changed it to $1 million by the end of 2020. He also reiterated his commitment to his wager.

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Following McAfee’s tweet, the crypto community became so enamored with the wild yet confident prediction that a website was developed called dickline.info that was dedicated to tracking Bitcoin’s progress along a plotted 0.484095526% per day growth trajectory that would match up with McAfee’s end goal for BTC.

Related Reading | Bitcoin Bottom Doesn’t Matter, Last Time General Population Can Afford Entire BTC

The infamous “dickline” had been mostly forgotten about as McAfee distracted the world with his antics, which includes a Presidential run in 2020, a crypto-backed fiat currency that adorns his likeness, and his going into exile to avoid paying taxes to the IRS.

However, outspoken cypherpunk and creator of Satoshi.info Jameson Lopp didn’t forget, and recently called attention to how Bitcoin is grossly undervalued according to the “dickline” trajectory.

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According to the site, Bitcoin price is currently 89.51% below where the leading crypto’s value would need to be to reach $1 million by the end of 2020. For Bitcoin to reach such a milestone, it should currently be valued at $37,797 according to the site. The number one crypto by market cap is currently trading at around $3,930 – suggesting that BTC is undervalued by nearly $34K.

Related Reading | John McAfee Interview: ‘Bitcoin Will Become The Gold Standard’

While many believe that Bitcoin will indeed reach incredible value if its potential is ever fully realized, a $1 million per BTC prediction may be unreachable as it would put its market cap somewhere around $21 trillion dollars. If it doesn’t reach the lofty goal set by McAfee, crypto enthusiasts will be disappointed Bitcoin didn’t reach it, but they’ll surely be tuning in to watch McAfee stay true to his word on national television.

Featured Image from Shutterstock

The post Bitcoin Price (BTC) Undervalued By Nearly $34K According to Infamous Dickline appeared first on NewsBTC.

Bitcoin Price (BTC) Undervalued By Nearly $34K According to Infamous Dickline

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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After $50, Litecoin (LTC) Can Easily Double and Soar to $110

  • Litecoin price up 18.3 percent in the last week
  • CoinBase Wallet now supports Litecoin (LTC)
  • Transactional volumes up

With CoinBase wallet, traders and investors can take advantage of this secure and Segwit supporting platform to store their stash including Litecoin (LTC). Meanwhile, it is after prices cross the $50 mark that risk-averse traders can ramp up with first targets at $70 and $110.

Litecoin Price Analysis

Fundamentals

Competition for dominance just got stiffer: CoinBase wallet, a hot wallet, that describes itself as the “world’s leading user-custodied crypto wallet” now supports Litecoin (LTC). Complete with a multi-coin feature, the inclusion of Litecoin is a step in the right direction and points to underlying demand from users. Litecoin complements Bitcoin and is the fifth most valuable coin in recent rankings thanks to their stellar performance in the last three weeks. At the time of press, the currency was up 19.9 percent in the previous week, and the new support is a reprieve for investors as well as traders seeking a safe abode against marauding hackers.

The wallet supports “newer Segwit address formats for lower miner fees, as well as Legacy addresses for backward compatibility in all applications.” Besides, they have top-notch security in place. Apart from encrypting private keys on the user phone, CoinBase wallet incorporates Secure Enclave meaning the exchange’s reputation will remain intact as they bring to use the best-in-class security feature to safeguard user funds.

In other news, Jack Dorsey—who together with Charlie Lee and other interested parties invested $2.5 million in the Lightning Network—is using the Tipping Browser Extension to receive LN tips. Increase usage of the new scaling solution will inevitably lead to demand in Litecoin as the network’s LN mirrors that of BTC and gain momentum.

Candlestick Arrangements

Litecoin

At spot rates, Litecoin (LTC) is up 18.3 percent and a few cents from breaching the $50 resistance level. Like in all our LTC/USD price analysis, the reaction at $50 will determine the medium to long term trend. It will be more so if buyers build enough momentum and close above $50 at the back of high trade volumes in a reflection of Feb 8 and Feb 18 upswings.

In line with our trade plans, every dip will technically be a buying opportunity, and as long as prices are above $35, bulls have the upper hand. Once there is a rally above $50, the bear breakout pattern of early Nov 2018 will be invalid as Litecoin (LTC) bulls take control, driving prices to $70, $90 and later $110.

Technical Indicators

After two weeks of bulls’ resilience, LTC is now retesting the $50 resistance mark. We are net bullish, and our reference bar is Feb 8—832k against 202k and Feb 18—522k versus 262k. Despite buyers, we need a solid breakout, and the only demonstration is if there is a high-volume bar breaking above $50 with above-average volumes ideally exceeding 522k on the lower side and 832k on the upper hand.

The post After $50, Litecoin (LTC) Can Easily Double and Soar to $110 appeared first on NewsBTC.

After $50, Litecoin (LTC) Can Easily Double and Soar to $110

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
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Jesse Lund of IBM: Bitcoin (BTC) Value Derived From Its Utility

  • Bitcoin prices up 10.1 percent in the last week.
  • Jesse Lund projects Bitcoin value to hit $1 million in ten years
  • Transaction volumes increase in the last three weeks

Jesse Lund is optimistic of future Bitcoin prices valuing the coin at $1 million. Cementing his optimism is increasing adoption which he says draws value and hence the huge valuation. Before $1 million, Bitcoin (BTC) must first breach $4,500 with decent volumes.

Bitcoin Price Analysis

Fundamentals

The creation of Bitcoin was monumental. It will continue to be as long as the demand for better fiat alternatives exists. Going by latest projection, it is likely that BTC prices will find use, proving its utility as peer-to-peer electronic cash.

Although the contention is on whether the coin will find eventual use as a store of value, that is, a settlement layer, or a medium of exchange, it is clear that Bitcoin adoption curve is on the right track. Regulators are thawing, and as the Lightning Network gain traction, it is the borderless BTC that will draw demand.

As a result of this upbeat view, it is no wonder that the SVP of IBM, Jesse Lund is very bullish on Bitcoin. It’s all about utility and the more valuable the coin, the more value it draws. In an interview at the Think Conference, he said the currency would be at $1 million in a decade:

“I have a long-term outlook. It goes back to that discussion about the utility of the network at a higher price. I see Bitcoin at a million dollars someday. I like that number because if Bitcoin’s at a million dollars, then the Satoshi is on value parity with the US penny. And that means there’s over $20 trillion of liquidity in this network. Think about $20 trillion in liquidity and how that changes things like corporate payments.”

Candlestick Arrangements

Bitcoin

In the short term, the trend is set, and Bitcoin (BTC) buyers are in control. Despite yesterday’s liquidation attempts, BTC is edging higher thanks to demand surge in the Asian session. As a result, price action has been realigned and trending in line with our last BTC/USD trade plan.

Since prices are up 10.1 percent from last week’s close, buyers have the upper hand. First targets will be at $4,500 but it is when prices rally above $4,500 is when risk-averse, conservative traders can buy on dips with first target at $5,800—the first resistance level.

Technical Indicators

Encouragingly, market participation is on the rise according to data from BitFinex. Average daily volumes are up from 10k registered on Feb 6 to 15k of Feb 21. We expect this trend to continue as BTC prices expand towards $4,500. Ideally, any break above $4,500 should be at the back of high volumes exceeding Feb 18’s 37k.

The post Jesse Lund of IBM: Bitcoin (BTC) Value Derived From Its Utility appeared first on NewsBTC.

Jesse Lund of IBM: Bitcoin (BTC) Value Derived From Its Utility

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange

Here Are 3 Reasons Why Copy Trading Strategies from Other Traders Makes Sense

 

  1. Profit without the usual trading chaos as a social trader

We all have to start somewhere, and trading is not an exception. Nevertheless, amateur traders with little to no previous trading experience have to master trading techniques and strategies on their own, which involves a great deal of risk. As a newcomer, you have to be really tough in order to bear the burden of analyzing news and market trends on a daily basis, to say nothing of learning to use advanced charting tools and following market signals. All these efforts often end up pushing beginners away. Social trading takes away a lot of the pressures away and provides traders with several ways to start closing profitable trades from day one.

The major advantage social trading has to offer, compared with the traditional trading opportunities, is a copy trades feature that allows everyone to copy the more experienced users of the same trading platform. Thus, newcomers are simply able to copy the experts’ elaborate trading strategies without any overwhelming preparation.

  1. Best effort-outcome ratio with Copy Trading

Among a number of outstanding social trading features, the copy trading feature provides the best effort-outcome ratio. Copy trading gives any newbie trader a chance to get easy profits by copying experienced traders. Moreover, this feature not only eliminates the newcomer’s fear of increasing their initial capital by trading, but it also allows them to quickly come up with their own trading strategies, which they will be able to use in the future.

Now, even this simple feature may sometimes raise more questions than answers when you get to the financial part of it, namely earning bonuses from getting copied.

Bonuses while trading stocks: myth or reality?

Trading platforms strive to make their award bonuses more and more appealing to traders. NAGA Trader, a German social trading platform, for example, has recently updated its bonus structure to incentivize those in the trading community whose trades are being copied and add more transparency to the scheme.

The new NAGA Trader copy trading structure allows traders to get up to €0.60 for a single copier on a trade.

There is also more to this: while those with fiat NAGA Trader accounts are able to receive bonuses in EUR, USD, and GBP, cryptocurrency stock trading bonuses can also be gained by setting up an NGC trading account.

There are some pretty straightforward conditions to be eligible for this award: the bonus can only be gained from a real-money trade held open for a minimum of 5 minutes before being closed.

Thus, not only do traders get a chance to gain insight into successful trading but the experts they are copying the trades of can gain an extra bonus on top of the profit made on their trades.

 

 

The post Here Are 3 Reasons Why Copy Trading Strategies from Other Traders Makes Sense appeared first on NewsBTC.

Here Are 3 Reasons Why Copy Trading Strategies from Other Traders Makes Sense

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange