BTC - Volatility Spiked, but Bitcoin still Less Volatile than Oil
Bitcoin has been rather calm as of late, even with the recent price drop
According to data from Skew Markets, bitcoin has been less volatile than oil during the first part of the year.
This is surprising considering bitcoin is often considered to be one of the most volatile assets in the world.
But the last several months show bitcoin has actually been less volatile than oil...
Check it out:
(Source: https://www.coindesk.com/oil-prices-are-now-more-volatile-than-bitcoin)
But what about the recent drop?
It doesn't look like the recent drop is yet factored in that chart shown above, which spiked bitcoin's volatility in a major way.
In fact, bitcoin volatility just hit the highest levels we've seen since November of last year after this recent price drop...
Given the speed and velocity of the drop, I actually am a bit surprised that chart didn't spike a bit higher than it did.
It was the second largest hourly drop in USD terms, ever.
It remains to be seen whether this drop was a one-off event or the start of a bearish trend
My guess is that we will quickly retake these losses in the weeks to come.
Emmanuel Goh of Skew seems to agree, saying the move was mostly technical based exacerbated by leveraged positions on Bitmex...
"It could be a technical move with highly leveraged derivatives positions getting called."
We will learn more about the next trend in the days to come.
Stay informed my friends.
-Doc