Bitcoin volatility has plummeted over the past year
The world’s leading cryptocurrency is becoming more stable
A large number of cryptocurrency opponents have repeatedly argued that crypto isn’t safe because the market is extremely volatile. These individuals are going to have to find a new argument to try and keep digital currency from advancing along its natural course, as recent data shows that Bitcoin’s (BTC) volatility has dropped in the past 12 months. Not only has it dropped, but it is now almost zero.
According to CoinMarketCap, BTC’s volatility has dropped 98% in the past year. This is an important observation, as it shows that the market is maturing, as has been predicted throughout all of 2018. On January 16 of last year, the trading range of BTC sat at 26%, but it is now less than 3.6%.
Daily volatility this year has been extremely flat, mostly staying within a $200 range. The lowest daily volatility was recorded on January 12 when it reached a two-and-a-half month low of just $45.17.
What this means going forward cannot yet be ascertained. A sustained reduction in volatility can be a trigger for a sudden movement, either up or down, in the markets. If BTC continues to trade at around $3,500 without seeing any increase, it could be a sign that another bear run is coming.
What the reduction in volatility shows is that BTC is becoming more stable. This is extremely positive for the digital currency, as well as all of the top coins, as greater stability leads to greater adoption and this will lead to crypto being able to take its rightful place as an alternative to fiat.