Incoming Bull Run? Bitcoin’s Volatility at Its Lowest in the Last 18 Months

Bitcoin is a byproduct of the 2008 financial crisis. Satoshi Nakamoto came up with an idea of developing a cryptocurrency that is free from the influence of banks and financial institutions. The reason behind the development of Bitcoin is that a currency is going to be built without the reason for the crisis in the first place. Banks and financial institutions influenced the 2008 crisis.

Using blockchain technology, it makes use of a public ledger that gets rid of third parties. According to Ilan Klein who is the founder of Blockchain Sensible, a blockchain-based art market, he said that “It was obvious that the population cannot trust its financial leaders to keep their money safe. There was a strong sense of anxiety about the economy’s structure”.

Ten years later, it seemed that the vision of Bitcoin replacing currencies hasn’t happened yet. Economies have recovered and it seemed that Bitcoin adoption is still not yet achieved.  One of the reasons is its volatility. Bitcoin’s price went from just around $1,000 to near $20,000 in 2017. In addition to this, it has dropped a significant amount of 2018 after regulatory changes were applied.

Volatility at an 18 Month Low?

October is quite important for the crypto market. It was on October 31^st when Satoshi Nakamoto released Bitcoin’s Whitepaper. The last time that Bitcoin experienced similar calm movement from the cryptocurrency was during March and April 2017. During that time, Bitcoin was trading at around $1,000 to $1,200. Then, mainstream media has highlighted cryptocurrencies that pushed the price of Bitcoin to near  $20K.

Is there going to be another bull run on the way? Bakkt is going to be launched this November. This is an effort by ICE teaming up with Microsoft and Starbucks. This means that there could actually be a chance that Bitcoin is going to see a good fourth quarter. In addition to this, you also have the impending CBOE sponsored Bitcoin ETF application.

A few months back, 9 Bitcoin ETF applications and that of Cameron and Tyler Winklevoss were denied by the agency pointing that there is the possibility of price manipulation.

The low volatility of Bitcoin could mean that people are now holding on to their Bitcoin for the long haul. This could mean that people are starting to consider Bitcoin as a safe haven for their assets rather than other cryptocurrencies out there.

Price Manipulation is Slowing Down?

Aside from the fact that there could be an impending bull run, there are also those that think that price manipulation may have decreased significantly. In the past, there were a lot of reports saying that Bitcoin’s bullish price was due to the possible presence of price manipulation.

Now, considering the fact that Bitcoin’s volatility is at its lowest in the last year or so, does it mean that more businesses would consider receiving Bitcoin?

Regulatory Clarity?

2018 was filled with regulatory changes for the entire crypto niche. In fact, just a few months ago, it was clarified by the US Securities and Exchange Commission that Bitcoin and Ethereum are commodities and not securities. And because of regulatory clarity, slowly, institutional investors are slowly participating in the market.