Bitcoin Price Volatility Returns Alongside Exchange Problems
As recently reported elsewhere on CryptoCoinsNews, price action has become “interesting” again after a long period of congestion. A possible explanation is that large traders are (re)positioning ahead of the re-opening of Chinese banks tomorrow. Although I don’t believe them to be the sole drivers of the uptick in Bitcoin price volatilty, problems with a couple of cryptocurrency exchanges have occurred during this period of expanding price movement. This issue of slow or failed withdrawals from Gox has been brewing for some time. Mt. Gox have released an official statement, asking for....
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Since its birth in 2008, financial experts and institutional investors have criticized the viability of Bitcoin as an independent currency, due to its highly unstable volatility rate. According to data provided by the Bitcoin Volatility Index, however, the volatility of bitcoin price against major currencies such as US Dollars have declined significantly since 2010. More importantly, the rate of volatility has decreased at a consistent pace, dropping at an average rate of 25% per year. At the beginning of 2011, the standard deviation of daily returns (volatility rate) recorded around 8.5%.....
Cameron Harwick is a PhD student in economics at George Mason University in Fairfax, Virginia. He conducts research into monetary theory and institutions. In this article, Harwick examines bitcoins issue with volatility and how bitcoin banks could offer a solution. Everywhere in the modern world, money is plagued with political problems. Bitcoin's success, with no help - and, indeed, much opposition - from political authorities around the world, shows just how valuable it is to avoid these problems. Nevertheless, as important an innovation as cryptocurrency is, it comes with its own unique....
Data shows the daily Bitcoin volatility has declined further this week, reaching very low levels not observed in around two years. Bitcoin 30-Day Volatility Has Come Down To Just 1.9% In Recent Days As per the latest weekly report from Arcane Research, the 7-day volatility made a low below the 1% mark earlier in the week. The “daily volatility” is an indicator that measures how the per day returns of Bitcoin have differed from the average during a specific period. While this period can be of any length, two versions of the metric are particularly natural, the 7-day volatility....
The recent levelling out of bitcoin's price volatility might be good news for everyday bitcoin users, but could it send a bunch of exchanges off the cliff? CoinDesk recently spoke to the CEO of a company whose fortune depends on the health of bitcoin exchanges. In the off-record conversation, the exec had something disturbing to say: bitcoin's falling volatility is causing problems for exchanges, which rely on volatility for trading volume. Without trading volume, their revenues will fall, leading to a shakeout in 2015. That's scary stuff, but does it hold up? Let's start with the link....
A report from Kraken has identified last month’s BTC volatility at levels not seen since the ‘Black Thursday’ crash of early 2020. With Bitcoin rallying from $30,000 to $42,000 and back again during January, BTC’s annualized volatility rose to levels last seen in April 2020, according to a new report from U.S. crypto exchange Kraken.January was a roller-coaster ride for Bitcoin, with BTC rallying 46% to a new high of $41,989 before retracing 32% to below $29,000. This resulted in the annualized volatility spiking to over 100% — which was last seen 10 months ago during the infamous ‘Black....