Bitcoin Price Volatility Hits Local Highs, At The Current Rate, It Will Match That Of Gold In A Decade
- Bitcoin volatility follows BTC price
- During the last week, the price volatility has hit local highs
In the past few days, Bitcoin has surged exponentially especially in early April. May has been the month that brought back volatility in full force as BTC price climbed above $8,000 from around $5,300. Over the weekend, the leading cryptocurrency also corrected 10 percent. This correction could have been worse as it has been large traders in the play in the market.
The ongoing volatility we are seeing in the crypto market could very well be a positive indicator.
Though we are stuck around $8,000, we still are very much in a bull market as currently, BTC price trades at $7,980.
Volatility Yet Again On A Rise
As a matter of fact, there is a positive relationship between price and volatility which makes sense because volatility attracts more traders. This then brings in more volume and more buyers in the market.
In mid-November 2018 when BTC price was around $6,350, Bitcoin volatility reached a local minimum and by mid-December when the price was at yearly low at $3,250, the volatility bottomed out as well.
Since then the price and volatility both have increased substantially. During the last week, the price volatility has hit local highs.
— TradeBlock (@TradeBlock) May 20, 2019
On the back of recent price surge that saw Bitcoin rising 20 percent over one day in April, the largest intraday price rise since 2018, Bitcoin volatility picked up amidst a spike in trading activity.
Over the past two months, this change in volatility has been started first being seen. While Bitcoin has historically recorded a high level of volatility in comparison to the traditional financial assets, it has been on a continued downward trend from the past few years.
This surge in Bitcoin price volatility is a bull indicator and we could further see more uptrend here. However, it won’t be all smooth sailing, a few corrections on the way are expected as we shared yesterday the five patterns that might be seen on Bitcoin’s rally to the next peak.
Meanwhile, Blocktown Capital took to Twitter to share how annualized volatility of Bitcoin continues to decrease approaching that of Gold over the last 8 years. In the next ten years, we could see the volatility of the leading cryptocurrency matching that of yellow metal’s.
“Bitcoin volatility continues to decrease and approaches the volatility of Gold over the past 8 years. At the current rate, bitcoin’s volatility will match that of gold in a decade.”
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