Bitcoin 7-Day Volatility Has Spiked To Values Above 7%
According to the latest weekly report from , the current 7-day volatility levels are the second highest seen in this year.The “volatility” is an indicator that keeps track of the average daily returns in the price of Bitcoin over a specific period of time.
Looks like the values of the metrics have spiked up in recent days | Source:As you can see in the above graph, both the 7-day and 30-day versions of the Bitcoin volatility have observed a sharp increase recently.
The collapse of FTX and the resulting market crash is behind the crypto’s sudden turn to volatile nature during the last week.
The 7-day volatility has surged above the 7% mark, reaching levels only behind the yearly high of June, when 3AC went bankrupt.
Historically, Bitcoin has become calmer following big spikes in the volatility like the one being observed right now. However, the report notes that the current market environment is filled with contagion-related uncertainty and abnormal positioning in derivatives, so the market will likely continue to be volatile in the coming days.BTC Price
At the time of writing, Bitcoin’s price floats around $16.7k, down 5% in the last week. Over the past month, the crypto has lost 12% in value. The below chart shows the trend in BTC’s price over the last five days.The value of the crypto seems to still be consolidating around $16.7k | Source:
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research