Bitcoin Volatility Is At Four Months Low, What’s Next for the Price of Bitcoin?
The volatility of Bitcoin has always been one of the biggest criticisms of it, however, the past few months it has been relatively quiet.
The chief investment officer at U.S. asset manager Blockforce Capital, David Martin says:
“So far in September, bitcoin's price has continued the consolidation and range-bound nature that was kicked off early August. As of this morning, bitcoin's volatility is now at a four-month low of 53.5%, a level not seen since May 11th,”
In August, the cryptocurrency started moving higher after President Trump tweeted his plans to impose additional tariffs on China, and received a boost when the Chinese yuan reached a more-than 10-year low against the U.S. dollar. However, Bitcoin surrendered these gains, falling to as little as $9,325.39 but it bounced back again.
Bitcoin generated some sharp gains earlier this year, climbing more than 200% between the start of April and June 26, when it reached nearly $14,000. Since Bitcoin has not definitively surpassed the $10,000 psychological barrier, it is believed that investors have adopted a wait and watch approach, as a breakdown below $10,000 can see the price plummet swiftly.
Traders have been focusing on macroeconomic developments, as any major changes could have a significant impact on the global asset markets. As the BTC price increased due to the massive adoption at all levels, everyone hoped that the coin would become less volatile over time. Traditionally, it is known that company stocks become less volatile as they grow from penny stocks or small caps to large caps or mega caps.