Bitcoin Not So Volatile Anymore

|
Bitcoin Not So Volatile Anymore
It's still historically too early to come to a definitive conclusion, but currently Bitcoin has become stable, even more so than some very popular stocks. A major barrier to entry for potential Bitcoin users has been the volatility of its price. The price of one Bitcoin in November 2017 was as low as about $5,800 USD. Within a month, the value of Bitcoin skyrocketed, or mooned, to over $19,000 per Bitcoin. Since Bitcoin's high of nearly $20,000 at the end of December 2017, the market has corrected accordingly; incorporating small bull runs, bearish falls and "dead-cat-bounces". While the fall from grace from $20k back down to the $6k range may be disheartening for outsiders looking in, Bitcoin has still proven to be a successful and profitable investment for those who took the plunge prior to late-summer of 2017. The major dips and peaks related to Bitcoin's price has given it some bad press, and certainly ascribed its status as a volatile or risky investment, to those more geared toward traditional investments. In recent months however, Bitcoin's price has seemed to reach it's bottom, or at least a point of stability. Since early August, Bitcoin has maintained a relative stability in the lower to mid-$6k range. An interesting thing to point out here is that this figure (historical volatility (HV)), though short-term, is less than that of some major Wall Street stocks. HV is a statistical measure of the the dispersion of returns for a specific security or a market index over a period of time. According to figures gathered from the Cboe Global Markets, and as reported by marketwatch.com, the HV of Bitcoin is now down to about 31.5%, which puts Bitcoin below that of Amazon.com (35%), Nvidia Corp (40%) and well below that of Netflix (52%). As marketwatch.com points out, the stability of Bitcoin is nearing a real benchmark of success as it nears Apple Inc., which sits at 29.3%. To put into perspective of what this means for the current time, back in January, when the price began its massive, corrective downfall, Bitcoin's 20-day HV peaked at 140%. Keep in mind, that while the 20-day HV is a short-term measure, the numbers are real, and may indicate the resiliency of Bitcoin. Additionally, it doesn't hurt to keep as a something to point out to any of your friends, family or peers who cite the volatility of Bitcoin in an effort to eschew its value or legitimacy.

More Articles

New to Bitcoin? What you NEED to know

The mania of a bull market is already starting. You may have just bought your first Bitcoin from Coinbase, been sent some Bitcoin from a friend via DropBit or are on the verge of taking the plunge. Before you go any further, here are several key things you should know that will help you navigate your journey into this revolutionary cryptocurrency. ...

Last Week in Bitcoin: April 8 - 14

...

New Hardware Wallet is the Size of a SIM Card

Cold-storage in something as small and simple as a SIM card....

Our Bitcoin wallet is here…

The easiest way to send
and receive Bitcoin.

×