Bitcoin
Bitcoin

Bitcoin 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.

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

Advertise With Us

Measured on a weekly basis, bitcoin volatility 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.

Volatility 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, skeptical about its ability to store value in any predictable way, have also stayed clear. At the same time, regulators across the globe have emphasized price instability when issuing warnings to retail investors dabbling in the cryptocurrency.

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

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