Bitcoin [BTC]: Report suggests coin’s volatility has shrunk during the crypto-winter

Bitcoin [BTC], the world’s largest cryptocurrency has often been touted as an unstable and fluctuating coin. However, the data recorded by Buy Bitcoin Worldwide suggests that a substantial decline in the degree of Bitcoin’s price volatility is in progress.

Bitcoin has often drawn flak from the cryptoverse for scalability issues. The largest crypto-asset had once recorded a sharp swing of over 15% in a single day. Post-December 2018, the volatility index charted for the ‘gold’ crypto coin, however, remains stable i.e., below 5%. Currently, the BTC/USD stability indicator for the 30-day period stands at 2.13% and that of the 60-day period is estimated to be at 2.98%.

The highest degree of volatility in the coin’s valuation till date was recorded on 20 June 2011. For the 30-day standard deviation of daily return, BTC/USD volatility index was at 15.64%. For the 60-day estimate, a rate of 14.37% was noted. This degree of volatility continued over the next two years until February 2014, when the volatility relapsed to a considerable degree.

The index squeezed for almost two years between March 2015 and July 2017, going below a volatility index of 5% and maintaining a low profile of 4% till December 2017. However, the next four months witnessed volatility breaking the 5% mark again, rising to 7.26% for a 60-day window in November next year.

The Bitcoin market is at press time, trading just below the $4000 resistance level. Previously, when the Bitcoin valuation collapsed between November and December 2013, the 30-day standard deviation stood above 12% while the 60-day window stood at over 9%.  However, the succeeding Bitcoin crash in late 2017 spurred a recovery in its price fluctuation, with the 30-day window falling to 9% and that of 60-day falling to below 6%. It even fell below that of traditional financial entities like NASDAQ, S&P which stood at a rate of more than 5% and 7% respectively during the said time.

On the grounds of this data, it can be speculated that the largest digital asset might be heading towards a more stable future with respect to its price and value.