The volatility in Bitcoin has once again bottomed out
Bitcoin’s volatility, which has been in a narrow range for a while, has reached its lowest level since November.
Bitcoin volatility has reached its lowest level in two months.
According to data provided by US asset manager Blockforce Capital, the 14-day volatility of the crypto money dropped to 40, the lowest level since mid-November.
This value increased to 100 in early 2019 and was measured at 85 four weeks ago.
The graph below illustrates the variability in volatility:
Source: Blockforce Capital
Bitcoin is currently trading in a relatively modest range. The biggest cryptocurrency is fluctuating between 3,500 and 4,000 dollars in the last month.
“Bitcoin is consolidating around $ 3,500 after a sharp fall in November,” said Jon Pearlstone, a crypto money analyst. Prior to this fall, Pearlstone stressed that digital money is retained at $ 6,000 for more than six months.
Some market observers prefer high volatility, because high volatility creates the opportunity for more profits for investors.
On the other hand, the coin has the other side
Critics say that price fluctuations make it harder to use Bitcoin as a tool of change.