The volatility of Bitcoin continues to decline.
The great volatility of Bitcoin is one of the biggest concerns for almost all financial institutions. The huge pumping and unloading, the manipulation of prices and the lack of regulation shed a negative light on Bitcoin and cryptocurrencies during the past year. This has prevented important decisions about Bitcoin ETFs from being rejected and postponed repeatedly. At a minimum of 17 weeks it indicates a constant amount of transactions with cryptocurrencies.
Bitcoin celebrates its tenth anniversary. It has been a long journey since the founders opened the way for a new future.
"This is a market that is maturing, so volatility should continue to decline, when it has a new market, it will be highly volatile until it is established, there are more participants, more derivatives, more forms of negotiation, hedging and arbitrage," he said. Mike McGlone, intelligence commodity strategist at Bloomberg.
The stabilization of Bitcoin prices has also led to a decrease in speculative investments. Gil Luria, research director of DA Davidson & Co., said that price speculation appears when people want to make big profits in a short period of time. Speculators usually move on to other volatile assets.
Bitcoin HODLers are definitely gaining on the long-term value of BTC. Investors are optimistic about the possibility of Bitcoin becoming a deposit of value and an asset. The argument that the SEC made to reject the Bitcoin ETFs is no longer valid.
"Recently, the volatility in Bitcoin was not as great as the volatility we have seen in other securities, such as the VIX product," said SEC Chairman Jay Clayton.
Nor are we obliged to listen to fools. Since Bitcoin is not yet a fully fledged investment product, investment companies can not promote Bitcoin for personal gain. It is known that investment companies charge high fees and act as intermediaries. We must make their services obsolete.
While Bitcoin's 30-day volatility is 1.71 percent, its one-year volatility remains at 4.86 percent. If the trend continues for 2019, Bitcoin could achieve low volatility throughout the year. Previously, Bitcoin had achieved a low volatility of 0.82 percent during the month of April 2016.
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