Bitcoin

Bitcoin price breaks above $ 51,000: volatility lower than 2017

Posted by admin

Bitcoin volatility is lower than it was in 2017, but analysts say it would have to continue to decline to maintain the upward momentum.

Bitcoin ( BTC ) hit a new all-time high at over $ 51,300 . The bullish surge that began in October 2020 continues with this

According to Bloomberg , the current run is different in terms of volatility from the 2017 bull rally, which peaked at under $ 20,000.

Data from Woobull charts say that Bitcoins 60-day volatility of 14.25 percent is . That’s a significant decrease from the 32 percent recorded at the height of the bull run in 2017.

In terms of realized volatility, however, Bitcoin’s price fluctuations are still far higher than that of gold. Data from crypto analytics provider Skew says Bitcoin’s current three-month realized volatility is 90 percent. That’s more than five times the actual price movement in gold, according to analysts at JPMorgan Chase.

In a statement to investors , analysts at JPMorgan Chase argue that the current rally in Bitcoin will not be sustainable as long as volatility does not decrease significantly. Part of this assessment is likely due to a roller coaster ride in January. In the process, BTC rose 46 percent to almost $ 42,000. Then it’s down over 30 percent to under $ 30,000.

For Bloomberg strategist Mike McGlone, the current Bitcoin price movements are only temporary. The market is expected to calm down again. According to McGlone, the growing institutional acceptance of BTC will even reduce the volatility of Bitcoin to the point that it is below that of gold.

Tesla recently announced it had purchased $ 1.5 billion worth of Bitcoin . The business intelligence company MicroStrategy continues to buy bitcoins

In early February, the US crypto exchange Kraken released a report in which it forecast that Bitcoin’s continued uptrend would be accompanied by reduced volatility .

According to Peter Brandt, Bitcoin is again on a parabolic rise. The largest cryptocurrency by market capitalization has risen by around 75 in the year to date.