The price of Bitcoin was little changed on Tuesday and other cryptocurrencies including Ether and the now-household-name Dogecoin were slightly higher after a weekend of surprise calm in the crypto market following a month of extreme volatility.
At last check, the price of Bitcoin was down 1.3% at $36,289, while Ethereum was up 1.61% at $2,585.35 and Dogecoin was up 4.62% at 32.3 cents after a Memorial Day long weekend of trading that, for the first time in a while, wasn’t marked by extremes.
Swings in the price – as measured by the spread between its daily high and low – fell to their lowest since the start of the year, despite reports that U.S. financial authorities are looking to take a more active role in overseeing the crypto market, according to Bloomberg.
Bitcoin’s 10-day volatility fell back to 106% from a high of nearly 162% on May 24, Bloomberg reported.
“Despite another set of ‘negative headlines’ Bitcoin actually rose $2,000 over the weekend,” Tom Lee, co-founder of independent research firm Fundstrat Global Advisors wrote in a research note. “I can’t help but view this as reinforcing the likelihood Bitcoin has bottomed, given bad news is not creating new lows.”
Lee said he sees Bitcoin exceeding $125,000 before the end of the year but was watching for a rise above $40,000 as a sign the digital currency has seen its lows for 2021.
Even so, Bitcoin’s recent volatility coupled with its marked drop from an all-time high of more than $64,000 has taken its toll on market confidence in the digital currency.
Bitcoin’s longer-term puts, or bearish bets, are drawing stronger demand than calls for the first time this year, a sign the recent selloff has taken a toll on market confidence.
A call option gives the purchaser the right, but not the obligation, to buy the underlying asset at a predetermined price on or before a specific date. A put buyer gets the right to sell.