Bitcoin volatility marked a four-month low after the number one cryptocurrency decreased less than 2 percent in the past 24 hours. However, the price remains above $10,000 for now as we can see in the latest cryptocurrency news reports.
Things are looking relatively since the Bitcoin volatility for the past 30 days has dropped to a new low that was seen in May 2019. Yet, if history is any indicator, this usually predicts a new violent move in an unknown direction. For the past 8 days, Bitcoin was trading in the range between the $10,000 level and $11,000 and its dominance index hovered around 70 percent. The volatility of the number one cryptocurrency is a double-edged knife as we already know. This could also be a good indicator for some because it gets rid of the weak hands of the market and guarantees that BTC goes to the strongest users. At the same time, it could also indicate the scarcity of the cryptocurrency because of the static supply.
On the other hand, the volatility is usually associated with the price and market manipulation so this is among the first reasons why the US Securities and Exchange Commission still is not approving Bitcoin ETFs. The volatility also has a lot of influence in trading making the entire process riskier. The traders usually see this as an advantage because they aim to make some more capital on the sudden price moves but those who are less advanced will experience some serious losses because of the harsh swings. It is also worth mentioning that the fundamentals for the cryptocurrency are looking much stronger since the hash rate is also increasing rapidly which could be related to the increased network security. At the same time, the Bakkt launch is also a major factor because it is among the most awaited events in the crypto community.
The bitcoin halving event is also waiting to take place which will decrease the supply of Bitcoins on the market in half and will drive the price even higher as it has already done in the past. Back in May, the volatility levels were as low as they are now and the price increased as twice as it did in June. Of course, as we read in the altcoin news previously, it is possible that the violent price swings could go in another direction.
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