Bitcoin continues to maintain low volatility. Has the market changed?

Bitcoin continues to surprise. The collapse of "black Thursday" has now become history and Bitcoin has reached a stable position on the $ 10.000 threshold.

Bitcoin seemed doomed, and instead ...

When Bitcoin's price declined by more than 2020% in a few hours in March 50 and $ 60 billion of its market capitalization suddenly evaporated, observers and financial market participants feared the worst, especially with halving a less than two months apart.

A noticeable drop in prices in the midst of the economic crisis due to the covid19 pandemic along with the increased supply of a devalued currency were seen as a bad sign for the cryptocurrency, but it wasn't.

In the months following what has become known as "Black Thursday", the price of Bitcoin recovered, going from less than $ 4000 in March to over $ 9000 in May, a week before the reward halved.

Despite a reduction in Bitcoin's offer through mining, this has had no effect on large-scale price, and has triggered a period of enormous stability for the cryptocurrency.

Since the beginning of May, Bitcoin has been trading consistently in a range between $ 8,800 and $ 10.000, with only short leaks above the $ 10.000 threshold and no consolidation.

Black Thursday is now history

The aforementioned price drop is now part of the history of Bitcoin volatility metrics. According to data from the skew markets, Bitcoin's implied volatility metrics fell for all three time frames - 1 month, 3 months and 6 months to significant lows.

The 1-month scale is now at 51%, its lowest point since March 2019. The 3-month scale has seen a drop from 115% to 63% in the past three months and the 6-month scale from 110% to 71 %, with the longest scales, decreasing with each passing day.

Implied volatility examines the likelihood of Bitcoin price fluctuations in the coming months based on the rush prices of Bitcoin Options contracts. On the other hand, the volatility of the last period picks up the historical volatility of the cryptocurrency which has also fallen to its lowest point in over a year since April 2019, as economist Alex Kruger attests.

He added that while there is no implication for a larger market movement, it is "surprising" and attests to the fact that the "market has changed". How Bitcoin will react to this long period of extremely low volatility will be an interesting turnaround for events for the rest of 2020.

And what do you think of it? You are continuing to trade bitcoins profitably with automated trading platforms like Bitcoin Revolution? If yes, let us know in the comments below your experience and if you can provide some suggestions, instead, to those who have not yet made a decision.