For almost a year, Bitcoin’s volatility level had not reached limits as low as those reported in these first days of July. For several months now, the top cryptocurrency has been in a surprisingly stable range.
According to analysts, periods of very low volatility similar to this one are followed by significant increases or decreases in value. In other words, there could be a significant drop in price or, conversely, a bull-run of rare proportions.
Whatever the outcome of this plot, it is verifiable that, since the fall of March and the subsequent Halving, Bitcoin has entered a stage of stability. This low movement volatility has unleashed a veritable avalanche of speculation about the near future of the main cryptocurrency.
Bitcoin’s volatility level remains low since April
According to publication of Binance, from last April to today, Bitcoin’s volatility level has decreased by 80%. Thus, from that moment, the price was in a fixed range between $ 8,000 and $ 9,800 per currency.
Similar observation made John Todaro, a researcher at Trade Block, who ensures that the low volatility range of the main cryptocurrency, has kept its price unchanged since April.
At time of writing, the Bitcoin price is trading at $ 9,415. On rare occasions, the price of this cryptocurrency exceeded $ 10,000. However, escapes were for the time being, which were followed by returns to the aforementioned rank.
It should be noted that the historical data regarding the volatility of Bitcoin, shows that when it falls more than 30%, the price tends to make big jumps. For example, Binance highlights that, in mid-February of this year, volatility fell by 21%, which caused a 60% drop in one month.
It should be noted that, although Halving did not result in a sudden large-scale price increase, it served to bring stability to a price that suffered a dramatic drop as a result of the official announcement of the Covid-19 pandemic by the World Health Organization (WHO).
What the metrics say
If the data presented by the Ambcrypto portal are accepted as true, the metrics are divided into 3 time periods. These are 1, 3 and 6 months each. As for the one-month scale, it is at its lowest point since October 2019.
When it comes to the second timeline, Bitcoin’s volatility has dropped from 115% to 63% within 3 months. During the last case, it fell from 110% to 71% in a period of 6 months. Longer scales continue to decrease with the passing of days.
This period of low volatility of Bitcoin in the midst of such an unstable international economic situation is a clear indication that the market is changing. The maturity of cryptocurrencies is entering a new stage. Bitcoin’s next moves will tell a lot about this evolution.
Transition process to the Digital Gold form
Can’t stop highlighting the report Bloomberg Galaxy Crypto of July, according to which, Bitcoin is in a transition stage. The metamorphosis of the main cryptocurrency would be according to this research, towards the Digital Gold form.
In addition, they explain that there are 2 weight factors that will cause the price of Bitcoin to increase at the end of this period of low volatility. These are the institutional adoption of cryptocurrency, on the one hand, and the inflationary policies of central banks, on the other.
As highlighted, Bitcoin’s period of low volatility, which has been going on for months and had not been at such a low level for almost a year, continues with each passing day. This factor fuels an avalanche of speculation regarding the future of this digital currency.
Data to consider
- After the March crash, known as “Black Thursday,” the price of Bitcoin rebounded. From less than $ 4,000 to $ 9,000 in less than three months.
- Since April, Bitcoin’s low volatility has fallen by 80% according to Binance.
- Bitcoin’s price range has been between $ 8,800 and $ 9,800, with some sporadic interruptions.
- According to Bloomberg Galaxy Crypto, after this period of low volatility, a large increase in the price of Bitcoin will come, due to the transition of this cryptocurrency to the digital gold form, institutional adoption and inflationary policies of governments.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: Binance.com, ambycrypto.com and bloomberg.com.