From almost a year ago, the level of volatility of Bitcoin has not reached to limits as low as those reported in these first days of July. Since several months ago, the main criptomoneda has remained in a range remarkably stable.
According to analysts, the periods of very low volatility that are similar to this, are followed by rises or falls of significant value. In other words, you could have a important lower price or, on the contrary, a bull-run of proportions rarely seen.
Whatever the outcome of this plot, what is provable is that, since the fall of march and the subsequent Halving, the Bitcoin entered a stage of stability. This volatility, little movement, has unleashed a veritable avalanche of speculation about the near future of the main criptomoneda.
Level of volatility of Bitcoin is maintained at a minimum since April
According to publication of Binancefrom last April until today, the level of volatility of Bitcoin has decreased by 80%. So, since that time, the price stood at a fixed range between $8,000 and $9,800 as dollars per currency.
Similar observation made John Todaroresearcher Trade Block, who says that the low range of volatility of the main criptomoneda, has maintained its price is little changed from the month of April.
At the time of writing, the price Bitcoin is trading at 9.415 USD. On rare occasions, the price of this criptomoneda exceeded $10,000. However, it was time fugases, which were followed by returns to the above-mentioned range.
It should be noted that the historical data regarding the volatility of Bitcoin, shows that when the same drops below the 30%, the price tends to make big jumps. For example, highlight Binance that, in mid-February of this year, the volatility fell by 21%, which resulted in a decline of 60% in a month.
It is noted that, although the Halving not resulted in a sudden rise to large-scale of price, the same served to bring stability at a price that suffered a dramatic fall in the wake of the announcement of the official pandemic of the Covid-19 by the World Health Organization (WHO).
What they say the metrics
If you are given certain data presented by the portal Ambcryptothe metrics are divided in 3 periods of time. These are 1, 3 and 6 months each. In terms of the scale of a month, the same is at its lowest point since October of 2019.
In regards to the second time scale, the volatility of Bitcoin has been reduced from 115% to 63% in a span of 3 months. For the latter case, the same fell from 110% to 71% in a span of 6 months. Scales longer continue to decline with the passing of the days.
This period of low volatility of Bitcoin in the middle of an international economic situation is so unstable it is a clear indication that the market is changing. The maturity of the criptomonedas, is entering a new phase. The next movements of Bitcoin will say a lot about this evolution.
The process of transition to the way Digital Gold
You can’t remove the highlight from the report of Bloomberg Galaxy Crypto the month of July, according to which, the Bitcoin is in a stage of transition. The metamorphosis of the main criptomonedas, would be according to this research, to the way Digital Gold.
In addition, explain that there are 2 factors that will make the price of Bitcoin to increase by the end of this period of low volatility. These are the adoption of the institutional criptomoneda, on the one hand, and the inflationary policies of central banks on the other.
As highlighted, the period of low volatility of Bitcoin, which has held for months and who had not been at a level as minimum since almost a year ago, continues every day that passes. This factor feeds off an avalanche of speculation about the future of this digital currency.
Data to be taken into consideration
- After the fall of march, known as “black Thursday”, the price of Bitcoin recovered. Of less than $4,000 to $9,000 in less than three months.
- From the month of April, the low volatility of Bitcoin has fallen by 80% according to Binance.
- Range of price of the Bitcoin has been set between $8,800, and $9.800, with some sporadic interruptions.
- According to Bloomberg Galaxy Crypto, after this period of low volatility, there will come a great increase in the price of Bitcoin, due to the transition of this criptomoneda to the way digital gold, to the adoption of institutional and inflationary policies of governments.
The information of this content has been taken from reliable sources which are detailed below: