In fact, since the birth of Bitcoin in 2009, the volatility of Bitcoin has been declining. However, since 2019, the volatility of Bitcoin has rebounded, setting a new high since the New Year.
- Coinbase: The number of Bitcoin users in the US has reached 27 million
- Is it blowing leather, or is it really stock? John McAfee postpones the announcement of Nakamoto’s identity
- BTC short-term test for $9,800 resistance, the disk is not stable, should not chase
- Who is the "golden master" behind the Bitcoin developer? Read the history of bitcoin development funding in a text
- Bitcoin's Secret History: How did Satoshi Nakamoto hide his identity on the Internet?
- Market analysis: the market is still weak, holding the bullet in his hand
According to data from the data site Coin Metrics, the volatility of Bitcoin has been picking up this year. As of July 7, Bitcoin's 60-day volatility was 5.4%, a record high since April 2018.
There are different opinions on why the bitcoin volatility has rebounded this year. Circle CEO Jeremy Allaire said that many people who believe in Bitcoin have begun to accumulate a lot of bitcoin when the bitcoin price bottomed out in 2018. The report by Adamant Capital and Delphi Digital also revealed this phenomenon.
SFOX's research indicates that bitcoin price increases are related to pre-holiday. More people are boosted by Bitcoin, which is driven by Facebook.
Blockchain Capital's Spencer Bogart has a different view of Bitcoin's volatility. He said that the current volatility of Bitcoin is the normal performance of a new asset, caused by fluctuations in the inherent supply and demand.
For the impact of bitcoin volatility, cryptocurrency analyst Counter said that bitcoin volatility rebounds for investors means that the return on investment will increase greatly, and at the same time attract more speculators to join the digital currency field. But it also means that the risk is greatly improved.
“There is one point. The increase in volatility will hinder the entry of traditional institutions to a certain extent, and will also increase the uncertainty of regulation,” Counter added.
So what about the volatility of the altcoin?
The volatility of the altcoin has always been highly correlated with Bitcoin, but under normal circumstances, the volatility of the altcoin is much higher than that of the bitcoin. However, the relative volatility of the altcoin against the bitcoin is now declining. .
Coin Metrics data shows that ETH's 60-day volatility is currently lower than Bitcoin, which has been the case since April 2018.
The emergence of such a situation is largely due to the fact that Bitcoin is the only one in the market. The altcoin is only falling, not rising, and has not yet gone out of the independent market.
There is a view that with the gradual rise in the value of Bitcoin, Bitcoin will be more liquid, and it will become more difficult for giant whales to push prices up through a single transaction, and Bitcoin will become a more useful medium of trading in the future.
So far, most of the holders have a positive view of the volatility of Bitcoin. (Coin World)