As the bitcoin volatility drops to 17-month low, is the hype dying down?

Is this the start of a new phase for Bitcoin or the beginning of the end for the biggest cryptocurrency?

That seems to be the question being pondered by both proponents and sceptics with volatility lingering at the lowest level since before the epic surge and collapse of the peer-to-peer electronic alternative to cash.

Those looking for some guidance from historical pricing patterns are out of luck. Neither a strong positive or negative divergence has formed over the past month, technical analysis measures show. Bitcoin traded in a similar pattern only one other time this year – in June, when its price jumped from around US$5,900 (NZ$9158) to around US$8,200 (NZ$12728).

“This could be a signal that the cryptocurrency market is maturing,” said Nigel Green, founder of DeVere Group, a financial advisory organisation.

Bitcoin is celebrating its 10th anniversary this month. But it took years for the cryptocurrency to gain steam as investors considered the potentials – and…