The bitcoin volatility index (BTC) has reached its highest level for three months


Due to recent declines, the bitcoin volatility index (BTC) has risen to its highest level for three months. In fact, the fluctuations in the price of bitcoin in the last 10 days in the US dollar have increased to 65%, the highest level since November 6, 2019.

By mid-November, the 10-day volatility index had fallen below 30%, and then increased to 60% three times: end of November, mid-December and mid-January.

Yesterday, however, jumped above 65%, indicating some agitation.

In fact, BTC price volatility indices at 30 and 60 days yesterday increased to 1.5% and 1.2%, respectively.

The last time the 30-day index was above 1.5% was December 23, 2019, after which it fell to 0.8% on February 9, 2020.

The 60-day index, on the other hand, is still lower than January 20, but it seems to be growing.

Emmanuel Goh, who manages the crypto-derivative tracker Skew, points out that a possible cause could be the liquidation of some longs positions with swaps in BitMEX during Wednesday's fall, that is, technical transactions with high-leverage derivatives, but the bitcoin market after yesterday's fall It still seems to be weak.

Although the price of BTC has never dropped below $ 9,000 and has never exceeded $ 11,000 since the end of January, sudden daily fluctuations within this band inevitably generate volatility.

So, although mid-December prices are far away, when they fell as low as $ 7,000, turmoil continues to prevail, perhaps because the $ 10,500 barrier has not been broken.

Federico Izzi, independent cryptocurrency market analyst explained:

“Actually, since the beginning of the year, volatility had plummeted to its lowest level for six months, that is, it had only fallen to levels reached last summer or October 2019. Only in the last 48/72 hours volatility increased significantly, to the extent that even today bitcoin fluctuates around 5%. Yesterday, during market downturn, lost up to 10% in a few minutes. In addition, volatility is even higher among other cryptocurrencies, such as Ethereum, EOS, Bitcoin Cash. However, contextualizing these movements, the upward trend that began at the beginning of the year, for now, does not seem to have been affected. The recent price increases, from December to three days ago, were structural, less violent than those of spring last year, for example, and without strong fluctuations. ”

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