The Bitcoin price volatility increased by almost 200% over the month
The Bitcoin price volatility has increased by almost 200% over the last month, as BTC has risen above the $ 5,000 mark.
According to Bitvol.info, the price volatility of the first cryptocurrency increased by almost 200% from a monthly low of 1.26% to 3.31% for the period from April 1 to 2. Currently, the volatility indicator is at the level of 3.54%.
The reason for this was the growth of the BTC rate by 17% at the beginning of the month. Since then, the price has remained in a relatively narrow range between $ 4,900 and $ 5,400 amid bullish forecasts and other indicators that signal the bottom of the market. Currently, the volatility is 3.54% - this is the highest figure in 3 months.
In general, the Bitcoin price volatility has been declining for several years. In fact, 2018 was one of the least volatile periods in the history of BTC, despite the depreciation at the end of the year. Last year, the Bitcoin volatility index remained below 4% most of the time.
The data for the last eight years shows a clear downward trend in total spot price volatility. Despite the fall in the price of Bitcoin in 2018, today's fluctuations are nothing compared to the first days of cryptocurrency, when the price per day could easily change by 100%.
Recently, cryptocurrency analysts noted that after the jump in Bitcoin exchange rate at the beginning of the month its price is in the consolidation phase. However, some traders believe that Bitcoin will soon reach $ 5,800. Previously, the representatives of BitBullCapital, managing cryptocurrency hedge funds, expressed the view that consolidating the Bitcoin rate above $ 5,000 is a positive signal for the industry.