Bitcoin Futures Volatility Hit Record Low

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Total News – Atlanta, GA 11/06/2018. Bitcoin Futures was the least volatile in October since the contracts were introduced nearly a year ago, according to Kevin Davitt, senior instructor for The Options Institute at Cboe Global Markets.

In the video, he said: 

"Last week, which ended on October 26, saw the least volatility yet with a 3 percent weekly high-to-low range. If we look at the weekly range over the course of October, it's a mere 6.6 percent, which is far and away the lowest monthly average." 

Since its creation, Bitcoin futures was about 15.7% average compared that to weekly volatility average of 6.6% in October this year.

The analyst added, "The waning cryptocurrency volatility is arguably even more interesting against the backdrop of escalating global equity volatility."

CEO of BitMEX Arthur Hayes wrote that volatility is essential for the digital currency adoption:

"Contrary to popular belief, Bitcoin requires volatility if it is ever to gain mainstream adoption. The price of Bitcoin is the best and most transparent way to communicate the health of the ecosystem. It advertises to the world that something is happening–whether that is positive or negative is irrelevant."

Cointelegraph reported that some analysts have interpreted Bitcoin's low volatility levels as positive including Bloomberg's Mike McGlone. McGlone stated that high volatility levels have been "a major factor lessening most cryptocurrency use cases" and that recently low levels are "a sign of speculation leaving the market and eventually a bottoming process."  

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