Has Wrapped Bitcoin (WBTC) come back down after today’s swings?
The Wrapped Bitcoin (WBTC) stablecoin appears to be heading for decline again after trading erratically today. It started at $37,199 (WBTC/USD) early in the day, then fell to $36,332 at 9 a.m. At press time today, it had recovered to $37,203, giving it a total gain of 1.54% for the day.
Compare that to the 1.48% increase in Bitcoin (BTC) over a 24-hour period and a rate of $37,228 (BTC/USD).
How BTC and WBTC Compare Recently
Bitcoin has seen erratic movements over the past few days compared to Wrapped Bitcoin. WBTC rises and falls more smoothly, encountering less sudden action than Bitcoin. This can be beneficial for investors who want a more stable token that they don’t have to watch every minute to see if it has taken a quick turn.
WBTC’s bullish and bearish runs aren’t as sharp as what you get with Bitcoin, even though Wrapped Bitcoin is designed to follow Bitcoin in a trailing move. This makes Wrapped Bitcoin a little easier to follow and less risky for investors who want the flexibility to withdraw or invest when rates start to change. They have more opportunities to do this securely with Wrapped Bitcoin.
The WBTC fell significantly last week and is still trying to recover.
What Investors Need to Know About Wrapped Bitcoin
Wrapped Bitcoin’s trading volume took a hit today, dropping nearly 18%, although it still benefited from over $266 million in trades in the past 24 hours. Its market capitalization has seen a slight increase and stands at $10,078,769,244.45.
Wrapped Bitcoin is designed to offer more liquidity and trading options than standard Bitcoin. It can be traded on the Ethereum network as a DeFi token, which is why some investors put their money in both Bitcoin and Wrapped Bitcoin. They can thus trade with more cryptocurrencies and rely on the relative stability of these two Bitcoin tokens to work with their assets.
WBTC tokens can be traded very quickly, especially compared to the transaction speed of regular Bitcoin.