- Kraken is among the first US-based crypto exchanges. According to a new Kraken report, Bitcoin’s overall annual volatility rose to levels it had not seen since April 2020, shortly after the “Black Thursday” event, when the capital value of the entire market was halved.
Kraken is among the first US-based crypto exchanges. According to a new Kraken report, Bitcoin’s overall annual volatility rose to levels it had not seen since April 2020, shortly after the “Black Thursday” event, when the capital value of the entire market was halved.
Black Thursday approaches volatility
January was a really chaotic time for the world’s first cryptocurrency, fortunately this time in a positive light. In the first month of the year, Bitcoin managed a massive 46% rally, rising to a new high of $ 41,989 (at that time). Bitcoin soon fell below $ 29,000, an increase of 32%. As a result of these actions, the annual volatility of cryptocurrency has increased to over 100%. Such figures were only seen during the 2020 Black Thursday price drop.
It was at the beginning of March 2020. The COVID-19 outbreak had just begun to shake the world. In a single week, the market cap of the entire crypto space has halved. Budgets were in ruins, investments were in ruins, and volatility climbed to terrible levels. During this horrible period, the asset’s volatility remained at 150%.
Other cryptos volatility surpasses Bitcoin
Now, in these odd times, reaching such a volatility level in Bitcoin is no longer even the most important news. Indeed, among the top five cryptocurrencies in terms of market capitalization, Bitcoin experienced the smallest increase in volatility.
Polkadot (DOT) was the winner of the most annual volatility. The asset managed to record 228% volatility. Cardano (ADA) was followed by 183% volatility. Even Ethereum got involved, seeing 160% volatility. DOT, ETH, and ADA all had an advantage over Bitcoin, as these assets did not experience a heavy correction in January. As a matter of fact, they closed the month with a record near various local highs.
Peter Schiff does his job
Kraken believes Bitcoin will see a bullish trend with a decrease in volatility in February, and points out how historically it has managed to bounce back an average of six percentage points with 15% less volatility.
Amid all this chaos, there is one constant constant for the crypto space: the sad and fun fact that Peter Schiff is against everything that is not gold. In a recent tweet, he announced that Bitcoin will follow the myspace path. However, it should be noted that Bitcoin is over ten years old and still continues. The same cannot be said for MySpace. For a start, today’s generation doesn’t even know what this is.