Bitcoin Reaches Unheard-of Low in Volatility

Bitcoin
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Bitcoin’s 30-day volatility has fallen to an all-time low of 18.7 percent, lower than the Nasdaq at 25.7 percent, according to data provided by James Butterfill, the head of research at CoinShares.

Bitcoin Reaches Unheard-of Low in Volatility0

Despite the fact that Bitcoin’s volumes have experienced a substantial decline, the world’s largest cryptocurrency is still trading roughly $5 billion per day on trusted exchanges. According to Butterfill, this proves that Bitcoin remains “a highly liquid asset.”

Bitcoin prices have undergone tremendous fluctuations over the past decade and it can be unpredictable, to say the least.

Factors such as speculation, technical issues, regulatory actions, and macro events can all affect its price. Due to its high volatility and lack of a central authority or government to regulate it, Bitcoin has become a risky investment proposition for many investors.

The fact that it’s not backed by any tangible goods or services makes it prone to dramatic price swings in both directions over a short period of time. For instance, the price of Bitcoin skyrocketed to its current record high of $69,000 in November 2021 when the demand for cryptocurrency was on an all-time high, only to crash to the $15,000 a year later when the market cooled off.

The cryptocurrency has been stuck in limbo for several weeks after experiencing a major crash following the collapse of the FTX exchange.



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Updated: 01/07/2023 — 03:00

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