We can see that volatility is a dominant topic in the Bitcoin news now, especially after Bitcoin (BTC) retraced to the $9,000 region after hitting the five-digit zone and trading at nearly $10,500. One Bitcoin analyst reflects that the first Bitcoin ETF rejection was the breaking point for the entrance of smart money in the industry.
Uploading a piece to social media, the prominent analyst Willy Woo showed charts of Bitcoin volatility which indicate a new phase had begun around March 2017. This was specifically the time when US regulators rejected the Winklevoss ETF application which was a first in the market then.
A historical volatility study with z-scoring. Notice how we are in a new region of volatility.
Q2 2017 holds the fingerprint of a new animal arriving. You can see it here in volatility. Also in a change of fractal patterning and increases in candle wicks (liquidation hunts). pic.twitter.com/LERPkjVvV9
— Willy Woo (@woonomic) November 1, 2019
The Bitcoin analyst reflects that this was a watershed moment for BTC.
“My thesis has always been that the 2017 Winklevoss ETF attempt was the first time in Bitcoin’s history that it was described as a financial instrument instead of drug money,” Woo noted.
On this, he added:
“It was covered in the WSJ. Smart money came in, the rise of crypto quant funds.”
According to his charts, the ETF denial formed the definitive reversal of strong volatility which had characterized Bitcoin since 2012. At the same time, the altcoin news were showing a lot of drops affected by the BTC price before that.
This is how volatility increased and why the Bitcoin analyst reflects that the dominant cryptocurrency is not stable. Further ETF rejections served only as a proof to this – failing to produce the same price impact as seen in March 2017.
As we reported before, the Bitcoin volatility remains a focal point of reflection for a lot of market participants who are keen to attract more new investments into the cryptocurrency space. Earlier this year, the CEO of the crypto exchange Coinbase Brian Armstrong highlighted the need to reduce the impact of volatility through the use of instruments such as stablecoins.
As it stands, Bitcoin managed to add less than a percent overnight and is now trading at $9,191. At this point, the market is still vulnerable but a lot better compared to previous months. BTC escaped the lows of $7,500 and is finally near the $10,000 mark which could be breached soon. On the other hand, altcoins seem to be retracing too and the market shows stable positions in the top 20.
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