Bitcoin markets have been taking a break from their characteristic volatility, moving within a reasonably tight range after suffering notable losses earlier this week.
The digital currency has been fluctuating between $9,900 and $10,200 since roughly 6 a.m. EDT, CoinDesk figures show.
The cryptocurrency entered this range after falling to as little as $9,682.71 early this morning, down roughly 20% in less than a week, additional CoinDesk data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin fell to this level, its lowest in more than two weeks, earlier today as markets responded to the latest developments surrounding the so-called trade war between the U.S. and China.
Jeff Dorman, chief investment officer of asset manager Arca, weighed in on this recent drop, emphasizing that the digital currency was “bound to come down when the Yuan stabilized and Trump walked back the tariffs for the time being.”
This makes sense, seeing as how the cryptocurrency “shot up last week over the Yuan devaluation, central bank interest rate cuts and Trump tariff threats.”
When explaining the relative stability in bitcoin prices that has materialized today, analysts claimed that investors were responding to oversold conditions, buying up the digital currency and helping to counteract bearish factors like the recent news that Barclays was no longer working with Coinbase, one of the cryptocurrency industry’s most highly visible exchanges.
“These fluctuations are driven predominately by traders,” said Chris Keshian, a former cryptocurrency hedge fund manager.
“The market is stabilizing around $10k after the run earlier this year,” he added, stating that some investors were simply buying the dip.
Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, also spoke to the different variables helping drive the price movements of the first digital currency to scale.
He mentioned the U.S. Securities and Exchange Commission’s (SEC) recent decision to delay providing a ruling on three separate proposals involving bitcoin exchange-traded funds (ETFs), emphasizing that this development, as well as the recent news surrounding Coinbase, could certainly be perceived as “short term pessimism.”
In contrast to these bearish developments, some traders have been flocking to bitcoin, causing it to function as a global safe-haven asset.
At any rate, many investors are nervous, said Hayter.
“People are skittish,” he stated.
Disclosure: I own some bitcoin, bitcoin cash and ether.