Bitcoin Volatility Reached 5-Month High In November
Bitcoin volatility climbed to its loftiest level since June last month, rising to this point as the digital currency’s price flirted with fresh highs.
The cryptocurrency’s 30-day annualized volatility reached 68.64% on November 30, the most since June 5, according to data provided by asset manager Blockforce Capital.
The volatility measure increased to this level the same day that bitcoin appreciated to $19,354.98, less than 5% below the prior high of $19,783.21 it had set in December 2017, CoinDesk figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin experienced some notable price action in November, climbing to $19,392.91 on November 24, additional CoinDesk data reveals.
At that point, the digital currency was trading at its highest point so far this year, and was up roughly 40% for the month.
After enjoying this rally, the cryptocurrency’s price suffered a pullback, declining to $16,242.70 on November 26.
The digital asset recovered most of those gains over the following days, closing the month of November at $19,354.98.
Bitcoin’s Bull Market
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It is worth noting that bitcoin has been benefiting from a steady, upward trend for most of this year, having climbed roughly 400% since reaching a 2020 low below $3,900 in March.
While bitcoin’s annualized 30-day volatility reached a five-month high in November, the figure of 68.64% compared to a historical average 30-day volatility of 63.22%, additional Blockforce Capital figures reveal.
In other words, the five-month high was not even 10% above the long-time average.
When explaining this latest bull market, analysts have repeatedly pointed to variables like institutional interest and the involvement of major payment providers Square and PayPal as driving bitcoin’s gains.
This situation contrasts with the bull market that took place in 2017, when retail investors, very strong enthusiasm and substantial media coverage all combined to help push bitcoin, along with many other digital currencies, to fresh, all-time highs.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.