In a bullish signal for the crypto market, the prices of Bitcoin have become steady at $36,289 on Tuesday. Meanwhile, Etherium and Dogecoin traded better after an uneventful Memorial Day weekend following a month of volatility.
The price of Bitcoin recorded a slight decrease of 1.3%, whereas the price of Etherium and Doge rose by 1.61% at $2,585.35 and 4.62% at 32.3 cents respectively.
Bitcoin and Ethereum Prices have Become Steady
Amidst reports of U.S. financial authorities seeking an active role in the oversight of crypto markets, swings in the price — as measured by the spread between its daily high and daily low — plummeted to their lowest since the beginning of this year. Bitcoin’s 10-day volatility decreased from a high of nearly 162% on May 24 to 106%.
“Despite another set of ‘negative headlines’ Bitcoin actually rose $2,000 over the weekend,” Tom Lee, co-founder of independent research firm Fundstrat Global Advisors, wrote in a research note to his clients. “I can’t help but view this as reinforcing the likelihood Bitcoin has bottomed, given bad news is not creating new lows.”
BTC Price to Exceed Past $125,000 Before Year-End
Lee believes Bitcoin’s price could surge past $125,000 before the year concludes. However, he will watch for a rise above the $40,000 benchmark to decide if the currency has seen its share of lows in 2021.
While a lull in market volatility is a welcomed respite, the slump in Bitcoin’s value since mid-April has eroded market confidence in the digital currency.
The demand for bearish bets or longer-term puts on Bitcoin is growing more than calls this year, indicating the toll taken by the selloffs. For the sake of clarity, a call option gives the holder the right to purchase an asset while a put option gives the holder the right to sell an asset.