Bitcoin just about resisting wild price swings and market sell-off
Against a backdrop of stock market volatility, this time it was cryptocurrencies staying steady…
by Manoj Sharma for CNR
Amid the wild price swings and stock market sell-off over the past week, the most popular cryptocurrency – Bitcoin – surprised many crypto enthusiasts with its uncharacteristic stability. It’s subsequently taken a bump off the back of a very real threat of UK regulation. Even the falls from that, though, were relatively contained. It points to the question as to whether this is a pointer towards a more maturing crypto market. Certainly one less dramatically volatile.
The price of Bitcoin had held around the $6500 level while the US stock markets took last week, for instance. This is a stark contrast to the uncharacteristic lack of volatility of Bitcoin. In fact, over the course of the week, Bitcoin’s price was down a negligible 0.83%. Not only was Bitcoin holding steady: other cryptocurrencies like Ripple and Ether also held their price over the same period. Although each has been affected somewhat in the last 24 hours too.
On the other hand, the US stock market saw sell-offs and wild price swings during the same week. As per areport by CNBC, The Dow Jones Industrial Average went up by 500 points last Friday after plummeting two days before with a 3% loss.
The US stock markets have had a pretty terrible month too, primarily due to the fears of escalating a trade war with China, as well as due to the growing interest rates in the country.
The Dow dropped by 1300 points earlier in October, which led to some quickly-reversed panic in the crypto market. But over the past week? Things have been a lot steadier. Famous last words, but might a corner have been turned?