On 26th June 2019, Bitcoin reached its 2019 high of $13,800. Before that, Bitcoin had consistently surged since April, a period when the virtual asset kept on breaching key resistance after key resistance. Many notable crypto-analysts have contemplated that the bullish momentum of BTC might keep pumping its price until the end of the year, possibly breaching its all-time high.
However, volatility grasped hold of the digital currency again and over the last few weeks, Bitcoin has been recording major sideways movement, failing to march past its yearly-high.
A lot has been spoken about the volatility attached to digital assets down the years. Mati Greenspan, Senior Analyst at eToro, even claimed that volatility attached to the asset was by design itself.
Now, according to recent statistics drawn by Coin Metrics, it was suggested that Bitcoin’s volatility is currently resonating at the same levels that were observed in early 2018.
From the above chart, it can be observed that Bitcoin’s 60-day volatility is at the same level as it was during April 2018. The present volatility rate is also similar to the one witnessed in January 2019 but after that, the rate hit a decline.
Since April 2019, it had been on an upwards direction and it was reported that BTC’s price was up by more than 200 percent against the US dollar.
In comparison, altcoins like Ethereum and Litecoin recorded a lower 60-day volatility rate. The common consensus in the crypto-market is that altcoins are more inclined towards volatility than Bitcoin is, but the recent bull run of the largest crypto-asset has increased BTC’s relative volatility rate with respect to altcoins.
Earlier this year, it was widely discussed that Bitcoin’s volatility had decreased in 2019 and it was indicated that Bitcoin was reaching a level of stability to compete with other traditional assets. However, recent findings tell a different story at the moment.
Crypto-traders and investors would be least worried about Bitcoin’s volatility for the time being, since it is pushing its price up. The sentiment can quickly change if the same factor pulls down the coin’s valuation in the coming weeks.