The sudden upward and downward movement in Bitcoin’s price is something most investors expect due to the volatile nature of this currency and the market as a whole. Longhash, on the other hand, a data journalism platform that helps users to make an informed decision on January 23 released a report which shows that Bitcoin’s price volatility has been declining since the virtual asset’s development.
Bitcoin’s Performance is Similar to that of the Past
According to Longhash, it’s ten years after Bitcoin’s birthday, but the digital asset’s performance has been quite similar for a while now. The platform noted that while users may be of the opinion that the highest peak volatility in 2018 occurred in November, this is not the case.
Bitcoin’s price in November may have fallen by over 43 percent within 11 days, but Longhash says other months have topped the charts. However, the platform has pointed out that its ability to determine the month with the peak volatility, is based on the data provided by Buy Bitcoin Worldwide’s Bitcoin Volatility Index.
Peak Volatility is Used as the Yard Stick
In this case, the percentage as a whole is not considered, but the peak volatility is measured as a standard deviation of daily returns. That being the case, December 10th had the peak volatility of about 5.5 percent. According to Longhash, this volatility is similar if not lower than that of 2017 when the bullish trend occurred.
Asides 2017, the report notes that other years also had higher volatility levels. An instance which was cited is the case of 2011 where the volatility was around 10 percent and as high as 15 percent. The same is said for years before 2014, and in the platform’s opinion, this was not an uncommon occurrence.
Comparisons Between 2013’s and 2017’s Bear Market
Additionally, the report compares the recent bear market with that of 2013 and the result is, they are quite similar. Here, Bitcoin’s dump in price in late 2013 can be likened to what’s happening recently. However, the unstable prices were much higher (12.57%) than that of late 2017 (7.71%), says the report.
BTCNN on January 17 also informed of Long Hash’s report, which revealed that Venezuela and Nigeria are now among the top countries around the world trading Bitcoin. Others that were named are the U.S., U.K, and China. Based on the report, while there was a sharp decline in the trades in each of these countries, only Venezuela saw a rapid increase in trades.