Here’s something you don’t say every day about Bitcoin and the wider cryptocurrency markets: where did the volatility go? We’ve spent the past few weeks looking at nearly the same charts every day.
Bitcoin goes up a little, goes down a little more, gets back to where it was by the end of the week. Predictability is nice for adoption and acquisition, but it’s not what traders are looking for.
Thus, if we rank the top cryptocurrencies by volume traded, things change around a little. As you may have noticed, Bitcoin Cash and Bitcoin SV fall straight out of the top 5.
Litecoin stands out as a highly traded cryptocurrency. It has almost 50% of its overall market capitalization traded on a daily basis. It still maintains a price somewhere above $30 and below $40, which means the trading must be across small candles.
A period of relative “stability” is often followed by a breakout in one direction or the other. All bets are off when you approach crypto markets. Bitcoin has resisted the temptation to go into discount price mode. Litecoin seems able to gain even on days when Bitcoin loses, which could lead to an actual secondary standard in the long run. Is there a future where Litecoin is a secondary crypto reserve?
Bitfinex held a higher price for Bitcoin all day long than competing markets, most of which were pretty close to each other.
The very interesting thing about the above markets is the straightness of those horizontal lines. This is not something we see frequently in Bitcoin, and the pessimist in this reporter believes it to be a very short-lived experience.
Yet, what if Bitcoin’s price discovery is in? (Just kidding.)
Bitcoin saw a slight dip in earlier-day trading by about $45 on Coinbase. It bottomed out around 7AM at roughly $3,395. From there, things picked up.
As the chart shows, an influx of volume brought the price back up to $3,411 by press time. If you’re waiting to buy Bitcoin, the wait might go forever if you’re looking for a better press range. Or it might get even cheaper in the coming weeks and months.
The weekend was relatively kind to Ether, showing a 5-day low of $103 to be mostly a thing of the past. The price did dip back there on Friday but jumped back out of there on Saturday by $2. Since then it’s stayed up above $105.
Today, the price seems to be working toward $108, which is the global price. However, on Coinbase, we’re looking at $106-107. It spiked almost to $108 by midday.
The value of Ether is predicated on the value of its platform. As we noted on Super Bowl Sunday, even the NFL championship game wasn’t enough to stimulate high demand for Ethereum-based gambling dApp Augur.
As noted earlier, Litecoin is one of the most heavily traded coins if you consider its volume compared to its market capitalization. Bitcoin averages around $5 billion in volume to its $60 billion market cap, while Litecoin averages over $700 million to its $2 billion market cap. This is a vast difference and indicates that Litecoin’s price is certainly realistic.
By press time, Litecoin was on another climb, nearing $34 after a midday volume spike.
Ripple’s XRP was working on getting beneath $0.30 after a day of trading. The global price on XRP is currently on the low side of $0.30.
Don’t be surprised if XRP is trading at a quarter over the coming weeks. Barring any significant pick-up in the wider crypto-market, Ripple historically follows the leader. Great demand for Ripple would only have a per-token effect at a minuscule level due to its giant supply.
Perhaps most interesting is that XRP overall volume slipped beneath that of #4 EOS, the Ethereum-alternative smart contract platform.
Featured Image from Shutterstock. Price Charts from TradingView.
Last modified: February 4, 2019 17:30 UTC