Bitcoin's volatility has peaked in the past week. The realized volatility indicator which measures the daily ups and downs of bitcoin over a specific period suggest that magnitude is massive.
It gets worse when, according to the Skew Analytics team, this amount of volatility has not been witnessed in three years.
Bitcoin realized volatility spikes to highest in three years surging past 2017 levels pic.twitter.com/7uf0z6InbT
They made a chart highlighting the volatility in Bitcoin. It shows the volatility rates over ten days, one month, three months and finally one year. The current numbers are so volatile that they have gone past even the disastrous times of July and also December 2017 by a massive distance. Those were the early days for Bitcoin and its high volatility was expected and to think that it has gone past even that captures perfectly the catastrophe that is unfolding before our eyes.
The corona crisis has wreaked havoc in the traditional markets, and even digital assets have to beared the brunt. The only possible explanation is the mess the market has become and the scarcity of liquidity of assets that has occurred.
The financial breakdown looks set to continue as corona continues to grow. According to top analysts, when the situation is as difficult as the current one, Bitcoin usually follows in the footsteps of traditional markets, especially stocks and gold. Bitcoin failed to rescue the situation and as the stock market had plummeted the Bitcoin Went spiralling downwards of too.
That being said, the investors have shown no signs of excitement or positivity towards the US Federal Reserve rate cuts, even if they got slashed to 0 % and the liquidity injection. The Fed has tried all the tricks up your sleeve, and they have failed in improving the situation. The economy is in turmoil and bitcoin continues to nosedive in the sea of misery.
The market looks set to stay bearish for bitcoin holders. The price of bitcoin ( BTC )continues to flounder and fall even further.
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