In recent days, Bitcoin has reached a new all-time high, exceeding the threshold of 51 thousand and 300 dollars, continuing in its run upwards that began in October last year. According to Bloomberg, the momentum that currently sees the world's most popular digital currency advance relentlessly is different from the bull run we witnessed in 2017, which led to the coin breaking above $ 20.000, especially in terms of volatility.
Indeed, data from Woobull Charts points to Bitcoin's 60-day volatility at 14,25%, a significant drop from the over 32% recorded at the zenith of the 2017 bull run.
Volatility still too high
However, in terms of realized volatility, Bitcoin's price swings are still on the order of magnitude higher than those of gold, just to make a comparison. Data from crypto analytics provider Skew puts Bitcoin's current three-month realized volatility at 90%, more than five times the actual change in the price of gold as reported by JP Morgan analysts.
In a note to investors, analysts from JP Morgan said that the current rally in the price of Bitcoin is unsustainable, unless volatility decreases significantly. Part of this assessment probably comes from what we witnessed in January, where bitcoin rose by 46% before reaching $ 42, then falling by more than 30% and seeing its price drop below the 30 mark. thousand dollars.
For Bloomberg strategist Mike McGlone, the current swings in Bitcoin prices are only temporary and the market should "calm down" shortly. According to McGlone, the growing institutional adoption of bitcoin will force the volatility of the digital currency to drop even below that of gold.
Meanwhile, it seems Microsoft doesn't want to repeat Tesla's move
Tesla, as we reported a few days ago, recently announced the purchase of Bitcoin for a value of about 1,5 billion dollars, while the business intelligence company MicroStrategy continues to expand its ownership in terms of BTC.
In early February, US cryptocurrency exchange Kraken released a report in which it predicted that Bitcoin's continued bull run would be accompanied by reduced volatility (which is also what most investors hope for. and small).
According to Peter Brandt, however, Bitcoin is still in another parabolic progress, in fact, the most important cryptocurrency in the world by market capitalization, so far prints about 75% of the earnings from the beginning of the year.
According to company president Brad Smith, Microsoft, the second largest company in the United States, apparently has no short-term plans to buy Bitcoins and include it in your balance sheet. However, given what has happened recently, it is not certain that someone has not already noticed what is happening and has already started to move some funds.