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Kraken: What was the Volatility of Bitcoin in August?

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Yesterday Kraken Intelligence published its report entitled “Grindin ‘Higher: August 2020 Bitcoin Volatility Report” with interesting data regarding the behavior of BTC during the month.

What was the behavior of Bitcoin in August?

Strong volatility

One of the key conclusions that the report yielded was that during the month of August there was significant volatility in Bitcoin, continuing with what was seen in the previous month. This caused annualized volatility to reach an infra-monthly maximum of + 60%.

In this way, on August 17, Bitcoin reached a monthly high of $ 12,480 before entering a major correction. Therefore, the cryptocurrency closed the month 3% above the previous month at $ 11,657.

A very interesting piece of information found by Kraken is that this rally coincided with MicroStrategy’s announcement regarding the purchase of $ 250 million worth of Bitcoin as part of a new “capital allocation strategy.”

Likewise, the report found that the increase in volatility at the end of June was what attracted the interest of the market and caused an increase in commercial volumes in the first week of August.

Correlations

Regarding the possible correlations between Bitcoin and other assets, Kraken Intelligence offered quite interesting information. We summarize some of the comparisons:

  • With the S&P 500: For most of the month, Bitcoin and the S&P 500 held trends in unison.
  • With the gold: At the beginning of the month the correlation increased significantly, however, as August wore on, the indicator reversed its course.

What’s next for Bitcoin?

Notable upcoming events include: the European Central Bank’s monetary policy meeting (September 10), the FAFT meeting to discuss the “Travel Rule” (October), among other events.

Additionally, Kraken is also forecasting negative returns for Bitcoin during September given that it is historically not a positive month for the cryptocurrency.

“With Bitcoin underperforming its average monthly returns for most of the year, we could see returns below -7%”, he pointed.

However, there is also the possibility of a new bull market given that, as of August 31, a record was reached in the amount of Bitcoins that are in the hands of the whales.

At the moment, BTC has a valuation of $ 10,250 according to the CryptoTrend tool, Crypto Online. Without a doubt, BTC is still struggling to maintain the five figures, despite having lost them several times in recent weeks.



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