The world's most heavily traded cryptocurrency Bitcoin has seen its price fluctuations temper and, according to a Bloomberg analysis Tuesday, some see this as a sign they are about to head into another bull run.
Meanwhile, Miami, Florida, will host the largest cryptocurrency conference later this week. The conference, which runs from June 3 to June 5 will see Twitter CEO Jack Dorsey and Miami Mayor Francis Suarez among those attending.
Bitcoin, the world's largest cryptocurrency by market capitalization, rose as much as 3.3% Tuesday, its third straight day of gains. Swings in the price - as measured by the spread between its daily high and low - fell to their lowest since the beginning of the year, despite reports over the weekend U.S. financial authorities are preparing to become more active in regulating the market. Bitcoin's 10-day volatility fell back to 106% from a high of nearly 162% May 24, Bloomberg reported.
"Despite another set of 'negative headlines' Bitcoin actually rose $2,000 over the weekend," Tom Lee, joint founder of independent research company Fundstrat Global Advisors LLC, said. "I can't help but view this as reinforcing the likelihood Bitcoin has bottomed, given bad news is not creating new lows."
Lee sees Bitcoin exceeding $125,000 before the end of the year, but is watching for a rise above $40,000 as a sign the digital currency has seen its lows for 2021.
"Cryptocurrency is a tough gig right now, the tape is messy, and Bitcoin could easily break hard one way or the other," Chris Weston, head of research at Pepperstone Financial Pty, said.
Bank of Japan Gov. Haruhiko Kuroda said late last week much of the trading was speculative. China late last month moved to crack down on cryptocurrency mining activities.
Meanwhile, most cryptocurrencies are in the green June 1. Prices were down May 31 after U.S. federal regulators accused a group of people of promoting a securities offering tied to the digital currency that raised over $2 billion from retail investors without being properly registered.
The U.S. Securities and Exchange Commission chairperson Gary Gensler said late last week there were "gaps in our current system" when it comes to regulating cryptocurrency exchanges.
The world's cryptocurrency market capital is $1.65 trillion, a 9.67% increase over the past day and the market volume over the past 24 hours was $120.11 billion - a 21.79% increase.
Bitcoin's price is currently $36,908.60, which marks its dominance at 42.21%, a decrease of 1.08% over the day. Ethereum was up over 15% at $2,660. On May 31, Bitcoin quoted near $34,200.
