Bitcoin prices muted but volatility is on the rise, says Cboe analyst

Bitcoin prices muted but volatility is on the rise, says Cboe analyst

Altcoins drifting lower on Friday

Bitcoin prices were trading marginally lower Friday, continuing what’s been a quiet week for the best-known cryptocurrency.

On Friday, one bitcoin BTCUSD, +0.60%  was fetching $3,618.91, down 0.8% since Thursday at 5 p.m. Eastern Time on the Kraken crypto exchange. For the week, the cryptocurrency is higher by 1.6%.

While bitcoin has spent much of the week treading water either side of $3,500, the overarching trend is a pickup in volatility, according to Kevin Davitt, senior instructor at the Cboe. “So, the New Year is underway and volatility appears to be percolating, which is off-putting to most passive investors,” he wrote.

“However, there are many market participants that understand volatility is a constant, and if volume numbers at Cboe are any indication, they are actively embracing the tools available to trade volatility and/or manage risk.”

Altcoins and futures moving lower on Friday

Altcoins — the collective group of more than 2,000 cryptocurrencies other than bitcoin — were drifting lower on Friday. Ether ETHUSD, +1.55%  was off 2% at $119.15, Litecoin LTCUSD, +0.84% was down 1.9% to $30.73, Bitcoin CashBCHUSD, +0.87% lost 2.4% to $125.60, and XRP, XRPUSD, +1.56% was off 2.2% at 32 cents.

Bitcoin futures have ticked lower on Friday. The Cboe Global Markets February contract XBTG9, -0.35% finished down 1.5% at $3,550, while the CME Group February contract BTCG9, -0.70% ended the day 0.8% lower at $3,560.

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