Bitcoin volatility almost returned to ‘Black Thursday’ levels in January

Bitcoin volatility almost returned to ‘Black Thursday’ levels in January 1

Bitcoin volatility almost returned to ‘Black Thursday’ levels in January 2

According to a new report from the U.S. exchange firm Kraken, the annual volatility of bitcoins rose from $30,000 to $42,000 and returned in January to levels last seen in April 2020.

The month of January was a roller coaster ride for Bitcoin, with BTC rising 46% to a new record of $41,989 and then falling 32% to $29,000. This led to a volatility spike of more than 100% over the course of the year – most recently 10 months ago during the infamous Black Thursday plunge.

Bitcoin prices, volatility and trading volume. Source: Kraken

In early March 2020, the price of bitcoin fell more than 40%, from $9,000 to $5,200 in a few days, increasing volatility from 60% to more than 150%.

Despite the volatility increase, Bitcoin’s volatility was the least increased of the top five cryptocurrency assets by market capitalization (excluding Tera).

Polka Dot (DOT) ended the month with the highest volatility of 228%, followed by Cardano (ADA) at 183% and Ethereum (ETH) at 160%. Unlike Bitcoin, ETH, DOT and ADA avoided sharp corrections in January and closed the month close to their local highs.

Looking ahead, Kraken predicts that bitcoin prices will rise in February with reduced volatility:

“With February averaging six percentage points higher than Can and 15 percentage points lower, we should expect February to outperform January and volatility to decline as BTC melts.”

However, not everyone is convinced that Bitcoin will continue on its path to greater heights. Renowned skeptic Peter Schiff, a specialist in gold and bitcoin, has suggested that the bull market in BTC is unlikely to last, predicting that it will be supplanted by the same rising DOGE :

Being out in front gave Bitcoin an advantage, but it doesn’t guarantee it will win the race. #Bitcoin = Myspace, #Dogecoin = Faceboo_______Instagram, = ____________. Nothing ever equals gold!

– Peter Schiff (@PeterSchiff) February 7, 2021

Frequently asked questions

At what time of day is Bitcoin most volatile?

Currently, 16:00 UTC is the busiest time of day for Bitcoin trading.

Will bitcoin rise or fall by 2020?

2020 has been a momentous year, especially for Bitcoin.

Will Bitcoin reach 20,000 euros again?

Yes, it certainly is. The price of bitcoin has been on an upward trend lately. Technically, there is a high probability that the 20,000 will be reached in one year, that is, before August 2021. There will be a slight decline, which will be beneficial for those in options trading, as well as support and resistance.

Relevant news

Be the first to comment

Leave a Reply

%d bloggers like this: