Bitcoin’s Market Route to Maturity

A research named, “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multiscaling effects” was published by Chaos.

A Route to Maturity 

The findings from the research for Bitcoin were compared to mature world markets from 2012 to April 2018. And it claims the market to have matured despite the early irregularities.

The research goes deep to explain their findings from Jan 01, 2012 to Mar 31, 2018, on a 1-minute chart. It claims the volatility at the start of the mentioned date shows almost little or no transactions. However, comparing this data shows a new regime characterized by a 10 percent increase in the price action.

The journal published by, Chaos named “An Interdisciplinary Journal of Nonlinear Science”. It suggests that mature markets like Stock, commodities, Forex etc follow the Inverse Cube Power-Law. And it reflects positive correlations between large market’s movements and the trades of large participants. And as per the observations between 2012 and 2013, the data didn’t seem to make much sense said the report.

But on further analysis, the reports suggest the confusion was due to the first two years. And that the market was just starting to shape itself. And rates from hereon fluctuated as per the inverse cubic power-law. The research studies “Non-Linear Temporal Correlations” using a number of factors based on Detrending, Hurst exponent, Multiscaling etc.

bitcoin and cryptocurrency

Conclusion

The report concludes with a couple of comments suggesting the Bitcoin and cryptocurrency market as a whole has matured since their introduction. The report states, 

The disruptiveness of cryptocurrencies, in particular of the Bitcoin (BTC), is well-evident in the striking, possibly unprecedented, rapidity of market capitalization.

And the reports ends on a subtle note saying, 

In spite of its virtual nature and novelty, the Bitcoin market recently and rapidly develops the statistical hallmarks. These are empirically under observence for all “mature” markets like stocks, commodities or Forex.

The Bitcoin price since it’s all-time-high in December 2017 has slumped ever since and has reached to $6000. The Bitcoin price (at the time of this article) is $6,868.29 USD. 

The Bitcoin price has been stagnant and less volatile than ever, So I’m guessing it has and is maturing. Do you think the market has matured as well?

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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