Looking at Bitcoin Volatility Over the Years
Since it was introduced in 2009, one of the biggest knocks against Bitcoin has been its lack of price stability. Bitcoin volatility has been a much-discussed topic over the past decade. Some believe that the price of Bitcoin is not stable enough to be used as a currency, while others believe that its price is becoming more stable with each passing day. To find the truth about Bitcoin volatility, you must take a look over […]
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Bitcoin volatility has fallen since 2011 and compared to the U.S. dollar currently sits at about 3-4 times higher than the Japanese yen, British pound, and euro. High volatility in the digital currency space has long been cited as a reason against adoption. But, as charts and analysis demonstrate, it is very likely that Bitcoin volatility is trending....
Seven years on, bitcoin still remains the largest digital currency by market capitalization. While bitcoin may have been the most volatile currency, it has since ceded that mantle to up-and-coming altcoins. The transformation of bitcoin from a volatile experiment, to a “stable” form of electronic money is illustrated in Figure 1. The graph plots the 90-day moving average market capitalization of bitcoin against its 90-day realized volatility. Volatility peaked alongside the market cap during the 2013 bubble. Over the past three years, the market cap fell substantially, then surpassed the....
What does it mean to be a “buyer of last resort” and how can Bitcoiners navigate the volatility of the bitcoin markets now and in the coming years?
Bitcoin itself has seen very little change over time — what has changed is the dominant perception of it. Over the years, Bitcoin has been able to overcome naysayers by frequently reinventing its narrative. Because Bitcoin (BTC) is multifaceted, it is able to quickly change to confront new criticism.We have seen this over the years. For example, Bitcoin used to be frequently assailed by the media for its volatility — many articles pushed the notion that Bitcoin was too volatile to ever succeed as a currency. We do not hear too much about Bitcoin’s volatility today, in part because....
For traders, volatility is a double-edged sword that can lead to vast riches or immense losses. Crypto traders are particularly susceptible to volatility due to the low liquidity in some projects, and the high concentration of some cryptocurrencies in the hands of individual whales. 2022 could prove to be one of the most volatile years […]