Bitcoin Is Experiencing Its Longest Stretch Of Price Stability In A While

stabilitybitcoin29 Jan 2014 / Business Insider – Bitcoin is experiencing its longest period of price stability in months, a trend that could help allay concerns that the digital currency is just too volatile to be of much mainstream use.

Starting in October, Bitcoin began experiencing almost violent price swings, driven largely by a run-up — and just as soon, a free fall — in Chinese demand. In December, the People’s Bank of China banned financial firms entities from handling Bitcoin, severely restricting the ability of BTC China, the world’s largest exchange, to operate.

The volatility charge has been cited even by retailers who now accept Bitcoin. Overstock.com, for instance, immediately converts its Bitcoin holdings into USD through Coinbase to avoid pricing risks.

“Until we can hedge through some kind of derivative instrument, we don’t want to take that direct exposure,” Overstock CEO Patrick Byrne told BI recently.

But Bitcoin price charts show volatility has seriously deflated in January. And that’s despite numerous negative opinions on the digital currency from MalaysiaRussia, and the world’s largest Nordic foreign currency trader — and despite the arrest this week of a major Bitcoin player.

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