Bitcoin's Plunge Below $10K Soars its Volatility to 3-Month High
Thanks to the sudden drop towards the end of the US day, Bitcoin volatility is again at the levels seen before early November, reported Bloomberg.
The historical swings on the Bitcoin-US dollar pair mounted to 65% on Wednesday, which is the highest level seen after November 2019. After that, the prices dropped again with more than 8%, i.e. from $10,168 at 5 AM to $9,327 45 minutes later. Then somewhat around 10:50 AM, the prices recovered and was trading at $9,572.
Emmanuel Goh, the person who runs crypto-derivatives tracker Skew, noted that it could be the technical move that will call highly leveraged derivatives positions. He further stated that at the time of the drop some high perpetual swap positions on Bitmex got liquidated.
Known for their volatility, most of the crypto assets have managed to keep their reputations by seeing significant surges from the start of 2020. The leading cryptocurrency, Bitcoin, is still at a high of 30+% from the start of 2020, which is a result of investors searching for alternative assets and many believe China’s Coronavirus epidemic is also a key reason behind the recent surge.
Bitcoin Surges in the Past Few DaysLast week, we noticed a 33% hike in Google-related Bitcoin searches. It can be the after-effects of the significant market moves, i.e. Bitcoin’s $10,000 surge for the first time since September 2019. Google searches which are considered a lagging indicator for the market tends to increase only after a major market move and not before. Which clearly justifies the leading asset growing buzz online.
The price of Bitcoin rose above $10,000 on 9 February after almost six months and was trading at $10,335 on Bitstamp, the Luxembourg-based crypto exchange. The move marks a notable shift in fortunes for the decade-old leading cryptocurrency which went as low as $3,196 in December 2018.
About The Author
JaveriaJaveria is into the crypto world ever since she heard about it and is pursuing her interest through cryptoknowmics. She is a sensational poet, technical writer and content strategist. Not to mention that she can go crazy when it comes to vampires and Wonder woman.
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