Bitcoin volatility below 2017 level as the price rises again. On the morning of February 17, the bitcoin rate on the Binance crypto exchange again updated its historical maximum, reaching $ 51.3 thousand. The price of the main digital coin is growing amid news that SynBiotic SE has announced the transfer of part of the funds to bitcoin. The firm said that the move was prompted by concerns about a massive devaluation of the euro and dollar. SynBiotic SE CEO Lars Müller noted that the company has more confidence in bitcoin in the long term than in euros or dollars, the money supply of which can be disproportionately increased.
According to strategists of JPMorgan, the volatility of bitcoin must decrease in order to keep prices at current levels. Since the volatility of Bitcoin was quite high back in January of this year. BTC soared from $ 30,000 to $ 42,000, and then fell to $ 29,000. The increase in the value of the coin was 46%, after which Bitcoin fell in price by more than 30%.
Although Bloomberg analysts have compared Bitcoin’s movement in 2017 and 2021. And concluded that there is a big difference between the two runs, and Bitcoin’s volatility in 2021 is much lower.
What’s the connection between the level of volatility and large investors?
If four years ago the explosion in the market took place in just a couple of months, then in 2020-2021 the ascent was gradual.
This trend is caused by the entry into the crypto sphere of large investors such as Paul Tudor Jones and Stanley Druckenmiller. Then other market players began to buy bitcoin, including MicroStrategy and Square. The breakthrough event was the January purchase of BTC by Tesla.
Compared to Bitcoin’s run four years ago, analysts believe the coin is now much less volatile. Indeed, Woobull Charts data estimates Bitcoin’s 60-day volatility at 14.25%, well below the 32% recorded in 2017.
Low volatility signals a consistently high interest in the coin from a certain group of investors.
In addition, Bloomberg strategic director Mike McGlone predicts a gradual decrease in the volatility of the price of bitcoin. As it is adopted by various companies and institutional investors. He pointed to the limited emission of cryptocurrency and emphasized that this is its main advantage over other assets.
Such an increase in bitcoin in February and a decrease in its volatility have become a reason for optimism among the supporters of the largest cryptocurrency. They are confident that BTC will show even greater performance in March.
Moreover, according to well-known analysts of the cryptocurrency market, bitcoin will most likely never fall below the $ 30.5 thousand mark. And an analyst at Plan B believes that this year Bitcoin may eventually “look closer” to the $ 100,000 mark.
Crypto industry expectations from 2021
To summarize briefly, the beginning of this year showed the best indicators for the crypto market. This made it clear that the cryptocurrency has a great future.
Investors have finally understood the true value of Bitcoin. Over the past three years, many more professionals have entered the market, and pricing has become much more balanced and fair.
As for the expectations from 2021, bitcoin has already been sent “to the moon”. Following bitcoin, many altcoins also updated their highs. Further expected the integration of crypto-tools into the financial industry, and technologies into the real economy. To move to the next level of global acceptance, cryptocurrency needs full legalization in key economies. 2021 should be a decisive year on a very wide range of issues.