CoinDesk Bitcoin Price IndexBitcoin trading on Coinbase since July 4.
Market participants are pointing to global stock markets as reasons for bitcoins rise in price, with the worlds oldest cryptocurrency in a narrow range just above $9,000 since July 3.
Equity markets are up across the board and so you see a spike in bitcoins price, said Michael Rabkin, head of institutional sales at Chicago crypto trading firm DV Chain.
Bitcoin price chart the past week on Coinbase
Indeed, stock indexes globally are flashing green. In Asia, the Nikkei 225 index of companies ended the day up 1.8%. Despite a rising number of coronavirus cases in Japan, gains were made in industrial stocks including conglomerate Mitsubishi. Europes FTSE 100 index closed up 1.5%. Optimism on fresh government stimulus across the continent contributed to leading the index higher. The U.S. S&P 500 index gained 1.6%. Record highs for tech stocks Netflix and Amazon led the way.
Since the start of June, the major stock indexes are actually beating bitcoin.
The S&P 500 (blue), Nikkei 225 (Red), FTSE 100 (green) and bitcoin since June 1
Despite some excitement in crypto price action Monday, traders point out volatility has been absent in the bitcoin markets, said Elie Le Rest, a partner at Paris-based cryptocurrency trading firm ExoAlpha, Since the bitcoin halving on May 12, the digital asset markets have gone nowhere for six weeks in a row, said Le Rest. Volatility has collapsed abruptly and bitcoin remains stuck between $8,200 and $10,500.
Bitcoins one-month at-the-money (ATM) implied volatility, reflecting the markets future expectation of volatility and calculated by using options with a strike price nearest to the spot price, has dipped. I ...