Bitcoin Volatility Continues To Decline, A Touch of Down Trend Line Could Act As Rally Peak Relative volatility compared to the Nasdaq composite index has fallen to historic lows. The Bollinger Band Width is also signaling a sharp decrease in volatility over time. Jun 14, · Bitcoin has a bad reputation to be highly volatile and incredibly unpredictable. As a matter of fact, it does not respond to any of the things that usually move traditional currencies, stocks, and shares, or commodities. However, this is no longer the trend. The volatility is evidently decreasing. Nov 28, · Finally, despite the rally of the recent months and the crash from the almost ATH in the past week, Bitcoin has been trading with decreasing volatility for longer than it has been in this bull market. Related Topics: bitcoin featured March-crash Volatility.
Bitcoin volatility decreasingBitcoin Declining Volatility Could Stage New Bull-Run, Analyst Says - feuerwehr-matzenbach.de
It is a positive signal that however returns to affect the market share of Ethereum that returns below 7. Ripple in the last hours is testing the dangerous support threshold of 25 cents of a dollar. If violated, it would increase speculation that could again attack the downward movement of Ripple. XRP is in a delicate situation because of the controversy of the Ripple foundation accused of manipulating the prices of the token that since mid-August has been moving around the low levels it had abandoned back in December Bitcoin oscillates around 10, dollars but this does not change the technical structure of the last days of the bearish triangle, which is the only figure of reference in this particular phase.
Same structure for Ethereum that continues to oscillate under dollars without giving particular signals from an operational point of view. It is important for ETH to remain above dollars and recover the dollars and then go on to chase away the bearish clouds above dollars.
In the absence of these signals, Ethereum will continue to stay in this limbo that has been characterising ETH since the end of August. Financial analyst and independent trader — S. He operates actively on stock and derivatives markets futures and options since A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years.
He participates annually as a speaker at the ITForum in Rimini since the edition and InvestingRoma and Napoli since the first edition of Since July he is a permanent guest on LeFonti. TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field.
Bitcoin volatility is in a clear decline as its monetization advances. Extreme daily returns are less frequent and less extreme than in the past. Shaded area marks range. Just looking at the numbers, it will become increasingly clear why that is the case. Just think about it, these numbers are insane and there are many people who will not like the outcome of this scenario.
That will not be. The cryptomarket is far different from what we have seen earlier. There are far more cryptoassets and far more users. Regarding the aforementioned graph, Nic Carter , the co-founder of Coin Metrics says:. The standard deviation of daily returns for the preceding 3months windows. These are measures of historical volatility based on past Bitcoin prices.
For comparison, the volatility of gold averages around 1. To be fair Bitcoin still has a long way to go to be comparable to the volatility of already established assets. You think the mainstream schools of economics are scientifically rigorous? No pundit wants that, so 21st century economics is banished to academia. Our creaky hobby-horses limp along like superstitions.
The way to reduce volatility is by giving a greater incentive to profit and lose from volatility. Options do this by rewarding trades that best follow discovery of the true market prices of the underlying product. Time to expiry allows leverage choices. The options are also market participants, so the effect is to stabilize prices while rewarding the best trades. The large bitcoin exchanges don't offer options trading.
Sign up to join this community. The best answers are voted up and rise to the top. How to stabilize Bitcoin's exchange rate reduce volatility?
Ask Question. Asked 7 years, 1 month ago. Active 4 years, 6 months ago. Viewed 2k times. Kozuch Kozuch 1, 3 3 gold badges 11 11 silver badges 26 26 bronze badges. There is another crypto currency called Freicoin, that tries to diminish in value in order to encourage spending: "Fees are taken for holding coins and distributed to miners. Active Oldest Votes. Radoslav Albrecht Radoslav Albrecht 1 1 silver badge 6 6 bronze badges.
I did not say I want a "central authority" to pump money into Bitcoin