Is Volatility In The Bitcoin Price Coming – Bitcoin Magazine


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The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Lack Of Volatility

One of the concerning dynamics in the market right now that we want to focus on is the lack of volatility. The high period of spot volume activity and relatively lower derivatives activity has really done little to move the price and bear markets are known for testing market participants’ patience when it comes to duration. We got some volatility with the most recent Consumer Price Index (CPI) inflation print, but bitcoin’s historical volatility is still at record lows.

Now, everyone wants to see this bitcoin price range break one way or the other; a larger range accumulation usually leads to a larger breakout move. It’s really something to see bitcoin’s historical volatility below the United Kingdom gilt market, but now it’s even below the average equity and bond ETF. This is when you know the market’s completely flipped around. Either that speaks to a lack of interest in bitcoin right now with a much larger move brewing or bitcoin’s entire asset profile has changed all of a sudden. We lean towards the former and history has shown that this record-low level of volatility doesn’t last long and has led to some pretty significant price breakouts and breakdowns.

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