A report from Kraken found that last month’s BTC volatility was at levels not seen since the “Black Thursday” crash in early 2020.
What does it mean?
According to a new report from the US crypto exchange Kraken, Bitcoin rose from $ 30,000 to $ 42,000 and returned again in January, with BTC’s annual volatility surging to levels last seen in April 2020.
January was a roller coaster ride for Bitcoin, and BTC rose to $ 41,989. This resulted in an annual volatility surge of over 100%, last seen during the infamous “Black Thursday” price drop 10 months ago.
In early March 2020, Bitcoin’s price dropped more than 40% in a few days from $ 9,000 to $ 5,200 – causing the volatility to go from 60% to over 150%.
Despite rising volatility, Bitcoin recorded the smallest volatility increase of the top five crypto assets by market cap (excluding Tether).
Polkadot (DOT) closed the month with the highest volatility at 228%, followed by Cardano (ADA) at 183% and Ethereum (ETH) at 160%.
Looking ahead, Kraken predicts that Bitcoin price will rise with decreasing volatility in February.