The volatility of Bitcoin (BTC) has become a hot topic of discussion in 2023. As its value reaches historical lows, investors have shown sensitivity changes to tokens known for their volatility outside the cryptocurrency circle
The volatility of Bitcoin (BTC) has become a hot topic of discussion in 2023. As its value reaches historical lows, investors have shown sensitivity changes to tokens known for their volatility outside the cryptocurrency circle.
BTC Historical Data
For leading cryptocurrencies, September is no exception as it still faces pressure during this period. However, since early October, the situation has undergone significant changes. According to a report from Bitfinex, a cryptocurrency trading platform, Bitcoin's 24-hour historical volatility increased more than fourfold on October 2nd.
The daily historical volatility is still above the 200 day moving average of the index. This means that compared to the past 200 days, Bitcoin has greater volatility. As of the release of the report, the implied volatility was 37.8% and the historical volatility was 32.4%.
Although historical volatility reflects the past price fluctuations of specific tokens, it also measures the expected future price fluctuations based on option contract prices. Based on this, analysts at Bitfinex predict that the current upward trend in volatility will continue throughout October. It is worth noting that there was a divergence between the price trend of Bitcoin and the stock market in October.
Analyze company reports
According to data from IntoTheBlock, the 30-day correlation coefficients between Bitcoin and major stock indices such as the Nasdaq 100 and S&P 500 have decreased to -0.3 and -0.5, respectively. In short, the stock market and Bitcoin market are moving in opposite directions. This discovery is reflected in the price fluctuations of various tokens. Over most of the past two months, Bitcoin has experienced a more significant decline compared to the US stock market.
In addition, Bitcoin hit the bottom of the range earlier than the S&P 500 index. Throughout history, these two financial instruments have fluctuated in the same volatility pattern. According to CoinMarketCap data, as of the time of writing, the trading price of Bitcoin was $27591, which has increased by 0.5% in the past 24 hours. The 24-hour trading volume of the world's largest cryptocurrency by market value increased by 16.41%.
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