The volatility is how much the prices fluctuate in a particular time and inherent risks involved with it. As per CBOE, Bitcoin’s price has been in a consolidated statement for more than six months. Moreover, now it is more stable than the shares of Apple, Amazon, and Netflix.
Although Bitcoin reached an all-time high of $20k last December 2027, it has corrected itself and is now in the $6000 bracket causing it to stabilize. This has caused Bitcoin’s price to be stable if not more stable than popular companies like Wall Street.
Further analysis revealed that Bitcoin’s 20-day volatility is 31.5% and is lower than Amazon, which stands at 35% and also lower than Netflix’s 52%. This is a great news as the cryptocurrency market has always been considered as a risky market due to its volatility as compared to stock markets, which are safe bets.
“One standard deviation for Bitcoin at present is 7.3% whereas back in December 2017, it was at 42%,” says a senior instructor at The Options Institute at CBOE, Kevin Davitt. Further continued saying,
Perhaps we are witnessing the maturation of a market. It’s far too early to declare this the “new normal”. However, the persistent range over the last few weeks may be hinting at a structural shift. And only time will tell.
This is true as we’ve been witnessing the bear market ever since the Bitcoin fell down to $6600 price point. It recently spiked to $7000 due to Tether (USDT) fud and has since corrected itself back to the $6600 price point.
The crypto community is, however, optimistic about Bitcoin’s next rally and expects Bitcoin to reach a new high. This might certainly be possible as major financial and nonfinancial players are getting into crypto. Bakkt’s launch will certainly help with the rally out of the $6600 range.
Like Kevin Davitt says, only time will tell about the next all-time high. When do you think this will happen?