Major digital currencies erased declines and were trading higher in early afternoon Tuesday action.
Coming off its most subdued week of the year, bitcoin hasn’t traded outside the $7,000 to $8,000 range since May 22, in what many proponents see as a positive sign for increased adoption of the prominent decentralized technology.
Charles Hayter, co-founder of CryptoCompare, said “there’s a lot of debate around if [bitcoin is] a store of value, or possibly a currency and the lower volatility does help those camps.”
The 30-day bitcoin volatility index, which tracks the standard deviation of returns for the past one -month and two month periods, recently put in a one-year low, trading at 2.77%, the lowest level since May 2017 and is down from 8.02% since the beginning of 2018, according to the Bitcoin Worldwide Index.
Hayter said such scenarios have played out before and that the reduced volatility may be just a function of the lack of news, especially on the regulatory front.
One person who isn’t buying into the adoption of bitcoin is Jim Chanos. Speaking at the Institute for New Economic Thinking, the famed short seller described bitcoin as a “libertarian fantasy” and said it is “the last thing I’d want to own is bitcoin if the grid goes down.”
A single bitcoin
last changed hands at $7,633.62, up 1.5%, since Monday 5 p.m. Eastern Time on the Kraken cryptocurrency exchange.
Ripple CEO bullish on use of XRP coin
The CEO of payment protocol Ripple said he expects “dozens” of banks to be using its payment system, which requires the use of Ripple’s XRP coin by the end of 2019. Speaking to CNBC, Brad Garlinghouse said he has “every confidence that major banks will use XRapid as a liquidity tool.”
The news comes less than a week after chief market strategist Cory Johnson told MarketWatch that a year ago the company was adding one financial institution every six weeks, and today it is one every six days.
Ripple’s XRP coin
joined the broad based rally in digital currencies Tuesday, trading up 3.7% at 68 cents.
Altcoins add to gains Tuesday
After a sluggish start to the day, altcoins, or coins other than bitcoin, have moved higher throughout Tuesday. Ether
is up 1.7% to $606.00, Bitcoin Cash
is higher by 2.9% at $1,149.60 and Litecoin
has added 1.8% at $121.60.
Futures followed the spot market higher Tuesday. The Cboe June contract
finished up 1.6% at $7,625, while the CME June contract
closed up 1.7%, at $7,625.