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Bitcoin volatility drops to 18-month lows

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TL;DR

  • Bitcoin volatility drops to levels last seen 18 months ago.
  • The current situation of BTC is quite alarming

Since it was founded in 2009, Bitcoin has existed as a decentralized digital currency. Since time immemorial BTC has dominated the crypto world as the largest and the most popular digital asset. This virtual currency has excluded itself from intermediaries and only allows peer-to-peer interactions.

However, since the end of 2021 in November, the leading and most popular cryptocurrency efforts to do away with its declining trend has not been bearing fruits. Besides its bearish trend in the market, its volatility has also attracted more concerns from experts and professionals after the current trend of it hitting one local low after another.

The Bitcoin volatility

Based on a statement report from the Buy Bitcoin Worldwide portal, the current situation of BTC is quite alarming. The Buy Bitcoin Worldwide portal noted that BTC’s historical volatility is at 18-month lows. The forecasted value in the last 60 days has dropped to 2.62%.

This has not been experienced in recent days. Such a trend had been denoted way back in 2020 in November. Bitcoin volatility was so low, and this was attributed to a situation when the orange coin went up to $10,000 for the very first time in the bullish cycle.

At the time of writing this article, the volatility was showing little signs of recovery despite the massive drop that was experienced at the end of last month on the 27th.

chart 7
chart 7

It is important to note that Bitcoin volatility entirely affects the fluctuation of the price in a day. This is the opposite of the VIX for the stock market. For experienced users and investors, checking on the volatility helps them estimate the price of BTC as the Bitcoin Volatility Index (BVOL) shows bitcoin fluctuations that directly reflect its price.

In July 2021, the volatility of BTC was at its peak, and records have it that the volatility was twice as it is currently. However, after resting at $37,400, BTC has been in the recovery process. After the bearish trend period in the month of April, Bitcoin has now hit up to $39,100.

This index has been said to be the lowest level. In January 2022, the index had decreased to the 10-20 levels only twice.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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