Bitcoin (BTC) reached a new high above $ 51,300, continuing its bullish rally that began in October 2020.

According to Bloomberg, today’s rally contrasts with the bullish rally in 2017, which exceeded $ 20,000 in terms of volatility.

In fact, data from the Woobull Charts shows Bitcoin’s 60-day volatility of 14.25%, well below 32% recorded at the top of the bullish trend in 2017.

However, when it comes to realized volatility, bitcoin price volatility is still several times higher than gold. Data from cryptocurrency provider Skew suggests that Bitcoin’s current three-month volatility is at 90%, more than five times the actual change in gold prices, according to a JPMorgan Chase analyst report.

In a note to investors, JPMorgan Chase analysts claimed that the current rally in Bitcoin prices is volatile unless volatility is significantly reduced. In part, this estimate is likely to come from the roller coaster in January, when BTC rose 46% to nearly $ 42,000, then fell more than 30%, falling below the $ 30,000 price tag.

According to Bloomberg strategist Mike McGillon, the current fluctuations in Bitcoin prices are temporary, and the market is expected to calm down. According to McGlone, the increased institutional adoption of BTC will cause Bitcoin to fluctuate less than gold.

Tesla recently announced a $ 1.5 billion Bitcoin acquisition, while business analytics firm MicroStrategy continues to expand its bitcoin holdings.

Earlier in February, the US-based cryptocurrency exchange, Kraken, released a report predicting that continued Bitcoin growth will be accompanied by a decline in volatility.

Bitcoin sees another parabolic advance, according to Peter Brandt, with the largest cryptocurrency to date by market value representing about 75% of annual gains.

Source: CoinTelegraph

LEAVE A REPLY