The price of bitcoin enjoyed a break from its recent volatility today, spending most of the day trading within reasonably tight ranges.
Overall, the digital currency’s price started by fluctuating mostly between $745 and $775, CoinDesk Bitcoin Price Index (BPI) figures reveal, before tracking higher.
Later, the price would edge upward, passing $800 at 16:30 UTC, and proceeding to trade between $800 and $820 until roughly 21:00 UTC.
At the time of report, bitcoin was trading at $804.30.
Though this may seem like a bumpy day, the developments follow nearly a week of sessions in which prices roiled on the news the People’s Bank of China (PBOC) had held meetings with the country’s major exchanges last week.
Prior to this, bitcoin prices had been trading at a three-year high of $1,153, however, uncertainty over the nature and outcome of the meetings (though all parties have provided public statements on their content) continues to linger.
Watch and wait
For a while this resulted in volatility, but bitcoin was arguably more stable today as market participants became interested in how any long-term trend could develop.
To some observers, the decline in price fluctuations could simply be the result of traders who are sitting on the sidelines and waiting to see what will come of this government inquiry.
According to Petar Zivkovski, COO of leveraged bitcoin trading platform Whaleclub, the market hasn’t decided if it’s going up or down just yet.
“The market is in a state of uncertainty and has failed to recover as of yet, despite reaching a monthly support level around $750,” he said.
Zivkovski noted that until the nation’s central bank has provided greater clarity on the matter, he believes that bitcoin prices could experience significant volatility.
Other, wilder theories emerged as well.
Arthur Hayes, CEO of bitcoin options exchange BitMEX, noted that the market is in a “state of suspense” pending updates, though he suggested the downside risk of further action was high.
Hayes went so far as to speculate that the PBOC could limit margin trading, an event he suggested would limit volume and harm prices.
Adding to the suspense is that the market movements resemble those observed in 2013, when PBOC actions derailed the digital currency’s appreciation and sent it on a years-long downward slide.
Whether or not history will be repeated is likely something on most traders’ minds.
Blue sky image via Shutterstock