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Bitcoin volatility sinks to lowest in nearly two years

Reuters  |  LONDON 

By Tom Wilson

LONDON (Reuters) - has experienced one of its worst annual price performances of its short 10-year-old life but also appears to have become more stable in the process.

of the original and biggest cryptocurrency has sunk to its lowest for nearly two years, with price swings falling lower than increasingly edgy U.S. stocks for more than two weeks in a row.

Measured on a weekly basis, is set to fall to its lowest since the end of 2016, when the digital coin was still a niche asset yet to muscle its way into global focus.

has been a major characteristic of the digital currency, which turned 10-years-old last week, throwing up major hurdles to its emergence as a mainstream asset class.

Most mainstream institutional investors, sceptical about its ability to store value in any predictable way, have also stayed clear. At the same time, regulators across the globe have emphasised price instability when issuing warnings to dabbling in the cryptocurrency.

Volatility has also prevented the spread of as a method of payments, its intended purpose.

Traders and investors are waiting for clarity on how regulators will treat such as exchange-traded funds, leading to them holding off on major purchases or sales.

A fall in trading volumes over the last three months is also a key factor, said Oliver von Landsberg-Sadie, of BCB Group, a

In contrast to bitcoin, volatility in the S&P 500, has since late September climbed to near seven-month highs. Investors in U.S. stocks are worried over rate hikes by the Federal Reserve and global trade and protectionism.

Bitcoin soared over 1,300 percent last year to a record high of almost $20,000 in December. This year it has slumped as much as 70 percent, before settling into a period of relative stability since September.

On Tuesday it was trading at around $6,420.

GRAPHIC: Bitcoin becomes more stable than U.S. stocks -

GRAPHIC: Bitcoin volatility sinks to near two-year low -

GRAPHIC: Bitcoin becomes more stable than U.S. stocks interactive -

(Reporting by Tom Wilson; Editing by Alison Williams)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 23:24 IST