1. Crypto Long & Short: The Pattern in Bitcoin’s Volatility
Bitcoin rode the rollercoaster this week, but its overall volatility has been in decline.
Bitcoin’s volatility has been moving in a downward direction, and the price of the currency seems fixed in a band between $50,000 and $60,000. Is the current market for bitcoin (BTC, +3.83%) a temporary lull between lurches? Or is it a long-term trend toward lower volatility that could change the way bitcoin is perceived?
The answer is, it’s too early to tell. The chart above shows bitcoin’s volatility has been on a steady decline. (Ether (ETH, +8.7%) and the S&P 500 are included as references.) However, it’s still in an approximate mid-range, historically.
As of Sunday morning, this past week’s correction hadn’t changed that. Bitcoin’s price remains roughly in a band between $50,000 and $60,000, and with this week’s dip marking the second time it’s rocked between the minimum and maximum of that range, its volatility is still roughly in the middle.
Using the table below as a guide, bitcoin’s stretch of middling volatility is likely to continue. At 43 days, it is still rather young, as these things go.
2. Buterin, Srinivasan Donate to COVID Relief Fund for India ‘Shaken’ by Second Wave
Buterin donated more than $600,000 in crypto while Srinivasan donated $50,000 and pledged up to $100,000 more.
Ethereum co-founder Vitalik Buterin and fellow cryptocurrency legend Balaji Srinivasan are pitching into a fund set up by Indian tech founder Sandeep Nailwal to help provide relief to COVID-19 ravaged India.
It all started with this tweet by Nailwal, the founder of Polygon, an Ethereum scaling platform.
3. Turkey’s Central Bank Head Says Crypto Regs Coming, Denies Total Ban Ahead
The head of Turkey’s central bank ruled out a total ban of cryptocurrencies and said a wide range of crypto regulations is coming within two weeks, Trade Moneta reported.
Speaking on state-run channel TRT, Governor Şahap Kavacıoğlu said, “You cannot fix anything by banning crypto and we do not intend to do this.”
Kavacıoğlu’s comments come less than a week before a planned ban on the use of cryptocurrencies for payments is due to go into effect. The announcement of the ban, which came as the use of cryptocurrencies in the nation has soared due to a plunging lira, drew protests from the government’s political opponents.
The comments also came shortly after the detention of employees of two crypto exchanges that are being investigated by the government.
Without giving details about the coming regulations, Kavacıoğlu indicated they would clarify the legal definition of cryptocurrencies and regulate how they should be stored by institutions, Trade Moneta said.
The central bank chief said the regulations are needed to address the “alarming” amount of funds leaving the country via cryptocurrency, the report said.
News of the country’s coming ban on crypto use for payments sparked a sell-off in the price of bitcoin (BTC, +2.94%) partly on concerns that other countries could follow Turkey’s lead.
4. Bitcoin Snaps 5-Day Losing Streak, Climbs Above $52K
The bellwether cryptocurrency was changing hands around $52,150, with hourly buyer volume at the highest since April 23.
Bitcoin rose for the first time in six days, climbing past $52,000 as bulls pushed prices higher in early Asia trading hours Monday.
In a rally that appeared to start around 22:00 UTC (6 p.m. ET) on Sunday, bitcoin (BTC) bounced off a seven-week low around $47,655, subsequently printing some of its largest hourly gains in two days.
The bellwether cryptocurrency was changing hands around $52,100 as of 2:16 UTC Monday, with buyer volume at the highest hourly levels since April 23.
Traders are speculating whether bitcoin might be correcting. Prices tumbled last week by the most since February, amid concern that U.S. President Joe Biden’s proposal to raise the capital-gains tax on cryptocurrencies and other investments might weigh on the market.
On the technical side, bitcoin’s relative strength index — an indicator used to gauge trend momentum — shows the cryptocurrency is attempting a daily timeframe bounce from levels of oversold at 30.00 on April 25.
5. Turkish Authorities Detain 4 in Probe of Vebitcoin Crypto Exchange
It’s the second crypto platform in a week to face troubles in a country that is banning the use of cryptocurrencies for payments.
Turkish authorities have detained four people as part of an investigation into Vebitcoin, a cryptocurrency exchange platform, Reuters reported, citing a statement from a local prosecutor on Saturday.
The action comes a day after state-run media announced bank accounts associated with the exchange had been frozen and a probe had begun following an announcement on Vebitcoin’s website that says the exchange had stopped all of its activities due to financial strains. The most recent tweet on the exchange’s Twitter feed said payments were delayed because of the strains.
Vebitcoin is now the second crypto platform in a week to face troubles after authorities detained 62 people with suspected ties to the Thodex platform, which went offline on April 18 and its CEO has gone missing amid claims of missing funds.
It’s not been a kind month for crypto in Turkey. Thodex went offline two days after the central bank announced a ban on the use of cryptocurrencies as a means of payment, effective April 30.
The ban is being enacted at a time when crypto use was soaring as the Turkish lira has faced significant outside selling pressure.
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April 26, 2021