Bitcoin volatility hit a new high in the year, and the opportunity to make big money came?

Bitcoin volatility hit a new high in the year, and the opportunity to make big money came?

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.

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)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Getting started with blockchain | Bitcoin's success book: How does it solve the double flower problem?

The Bitcoin White Paper, released in 2008, shows the world the first fully functional P2P cash transaction system. In...

Blockchain

CoinGeek Conference 2020 | Satoshi Omoto: You have a misunderstanding about Bitcoin!

From February 20th to 21st, the CoinGeek conference was held in Old Billingsgate, London. This is the fifth CoinGeek ...

Blockchain

Explain why Bitcoin needs lightning network with the example of Bar Judy

There have been a lot of "eye-catching" events in the circle recently, but what impact will they have on th...

Blockchain

What experience did NASA send to Apollo's computer mining 50 years ago? It takes 10^18 years for a block...

How hard is bitcoin mining? A foreign geek made a bold experiment with the NASA antiques that had sent the spaceship ...

Blockchain

The market reacted to the message and the trend is still downward.

The internal and external environment of the market has not improved much. We have seen some unfavorable news about t...

Blockchain

September public chain observation: How to treat Bitcoin mining after the market?

Description The public chain is an important part of the blockchain industry. There are 2,963 cryptocurrencies and 20...