Volatility could soon be back in vogue for Bitcoin.<\/p>\n
One technical gauge is showing dramatic price swings for the digital token may be primed for a return: the difference between Bitcoin\u2019s upper and lower band in the Trading Envelope indicator is at its narrowest since mid-September. The gauge smooths moving averages to map out higher and lower limits and a similar narrowing last month preceded a drop of more than 12% for Bitcoin on Sept. 24.<\/p>\n
In addition, Bitcoin closed below its opening price in six of the last seven trading sessions. The last time it exhibited that pattern — in mid-September — it lost about 20% in one week.<\/p>\n
Bitcoin has been hovering around the $8,000 level over the past month\u00a0amid a surge\u00a0of negative news that\u2019s weighed on the rest of the digital currencies market as well. High-profile companies, including Visa Inc. and Mastercard Inc., have withdrawn their support for Facebook Inc.\u2019s plan to launch a global cryptocurrency called Libra. U.S. regulators have also\u00a0raised objections\u00a0— the social media giant\u2019s chief executive, Mark Zuckerberg, is set to testify before Congress this week as the company\u00a0struggles\u00a0to persuade lawmakers that its project is a sound one.<\/p>\n
\u201cAs it becomes more and more obvious that the Libra thing is not going to take off — it\u2019s going to be a long time before it becomes an important part of anything Facebook\u2019s doing — as that becomes more obvious, the volatility will pick up again,\u201d Matt Maley, equity strategist at Miller Tabak + Co., said by phone. \u201cThis issue with what\u2019s going on with Libra and Facebook is a definite headwind and it\u2019s not going to go away.\u201d<\/p>\n
The Federal Reserve has weighed in on Libra, too. In remarks last week, Fed Governor Lael Brainard\u00a0said\u00a0that any global stablecoin \u201cshould be expected to meet a high threshold of legal and regulatory safeguards.\u201d<\/p>\n
\u201cBrainard\u2019s comments taken as a whole reflect an extremely cautious approach to stablecoins and the notion of central bank-sponsored online currencies,\u201d Nicholas Colas, co-founder of DataTrek Research, wrote in a note last week. \u201cThat makes sense: The Federal Reserve backs the world\u2019s reserve currency and has little incentive to put that title at risk with untested technologies.\u201d<\/p>\n
Bitcoin has dropped about 2% over the last week. Peer coins, including Litecoin and Ether, are down 2.8% and 5%, respectively.<\/p>\n
Volatility could soon be back in vogue for Bitcoin.<\/p>\n","protected":false},"author":341034,"featured_media":252401,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44696],"tags":[187,61488,191,59569],"class_list":["post-324330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrency","tag-libra"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/324330"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=324330"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/324330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/252401"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=324330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=324330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=324330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}