Cryptos: Crypto Prices Drift Lower, But Holding Inside Short-term Ranges

Major digital currency prices drifted lower on Wednesday, erasing the small gains made on Tuesday, but holding inside recent tight ranges.

Bitcoin, BTCUSD, -0.19%  the best-known cryptocurrency, was changing hands at $3,850.60, down 0.4% since Tuesday’s level at 5 p.m. Eastern time on the Kraken exchange. The digital currency has yet to trade outside the $3,400 - $4,400 range this year.

Read: Stock market poised for tepid rise, but Dow remains under pressure amid Boeing 737 8 woes

What are analysts saying

“It’s good to see the SEC taking a more rational approach to crypto,” wrote Gavin Smith, CEO of Panxora, a cryptocurrency trading platform, speaking after Securities and Exchange Commission Chairman Jay Clayton reaffirmed the agency’s stance that Ether is not a security.

“However, we’re not quite out of the woods yet. Global crypto organizations will still be waiting to see how the U.S. moves to regulate crypto going forward. This is because U.S. authorities have a controlling stake in the development of cryptocurrency globally. So far this has meant crippling fines and sometimes criminal proceedings on companies, regardless of whether they are legally operating their own jurisdictions.”

Read: SEC’s Jay Clayton says Ether isn’t a security, reiterating the regulator’s stance

Altcoins and futures

Smaller cryptocurrencies, commonly known as altcoins, are in the red to begin trading. Ether, ETHUSD, -0.18%  fell 1.5% to $130.88, Litecoin LTCUSD, +0.22% was off 2% to $54.85, Bitcoin Cash BCHUSD, +0.31% lost 0.7% to $126.30 and XRP XRPUSD, -0.43% was down 0.7%, trading at 31 cents.

Bitcoin futures ended marginally lower on Wednesday. The Cboe Global Markets March contract XBTJ9, -0.39%  closed down 0.3% to $3,850.54, while the CME Group March contract BTCH9, -0.13%  fell 0.1% to 3,840.

Read: Accepting bitcoin could create a grande headache at Starbucks

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

RECENT NEWS

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more

The Risk Most Portfolios Do Not Explicitly Manage

Most portfolios are constructed on a simple and widely accepted assumption: that equity risk will be r... Read more

Gyrostat April Outlook: The Changing Cost Of Protection

Signals For Portfolio Construction This monthly Gyrostat Risk-Managed Market Outlook does not attemp... Read more

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more