According to Econometrics, the volatility patterns typically associated with Bitcoin will undergo significant changes by 2023. Compared to the previous decade, this year is an unprecedented period of stability, with volatility consistently hovering between 20% and 40%
According to Econometrics, the volatility patterns typically associated with Bitcoin will undergo significant changes by 2023. Compared to the previous decade, this year is an unprecedented period of stability, with volatility consistently hovering between 20% and 40%.
Despite a decrease in volatility, Bitcoin's performance remains strong, with a return of 100% as of the beginning of the year and reaching above the $35000 mark.
Source: Econometrics
The decline in volatility extends to both actual and implied volatility. Realized volatility is an indicator of actual price changes, and its trend continues to decline. Similarly, implied volatility, an indicator of future market unpredictability, has also decreased.
Potential and actual fluctuations
This combination of excellent stability and stable performance results in Bitcoin having a higher Sharpe ratio. As a risk adjusted performance measure, a higher Sharpe ratio indicates that investors have a higher return for each unit of risk they bear. Essentially, Bitcoin investors will receive more returns and maximum investment returns in 2023, while their volatility is significantly lower than in previous years.
As the opportunity for Bitcoin Exchange Traded Funds (ETFs) to obtain approval surged, six digit price forecasts have become increasingly common, especially with less than 180 days until the halving event in April 2024.
# First. A Historical Model of Bitcoin Price Halving
The price trend of Bitcoin often exhibits cyclical behavior. Analysts extracted the current price trajectory and historical patterns, indicating a potential upward market cycle reminiscent of 2013 to 2017.
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Although some people believe that the upcoming halving will be the most important event to date, others believe that the outcome of this time may be different.
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In addition, smaller addresses set a cumulative record, breaking a new high in 2023.
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# 4. Exciting cryptocurrency market sentiment
The fear and greed index (a measure of investor sentiment) in the cryptocurrency world has reached an astonishing 72, indicating that 'greed' is prevalent in the market.
The Fear and Greed Index scores 72, representing 'greed'
2021 11 Bitcoin 69,000
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