Bitcoin has set a number of records over the past year or so, most of them bad, but the most famous digital currency is on the verge of setting a mark that may give crypto pundits something to cheer about.
According to Dow Jones Market Data, the monthly trading range of bitcoin for March stands at 7.8%, which if holds, would be the least volatile on record.
“Volatility is in itself a neutral signal. Historically however, low-volatility periods in BTC have always preceded prolonged bull runs, especially after capitulation moments of high momentum as seen in November and December,” wrote Murad Mahmodov, cryptocurrency analyst in a note to MarketWatch.
Skeptics like economist Nouriel Roubini have long argued excessive volatility, like monthly trading ranges greater than 100% observed in late 2017, would hinder mainstream adoption of digital assets. In an October Senate hearing on cryptocurrencies and blockchain, the professor of economics at New York University’s Stern School of Business spoke about volatility and other shortcomings.
“No one prices anything in bitcoin. Few retailers accept it. And it is a poor store of value because its price can fluctuate by 20-30% in a single day. And since its price has been so unstable or volatile almost no merchant will ever use it as a means of payment,” he said.
But as volatility subsides, some industry pundits are…
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