Bitcoin Investment Appeal Strengthens as Volatility Declines to Yearly Low

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Reported today on Being Crypto

For the full article visit: https://beincrypto.com/bitcoin-investment-appeal-strengthens-as-volatility-declines-to-yearly-low/

Bitcoin volatilityWe can describe volatility as how much the value of an asset changes over a given time. A volatility index... More has traditionally been a deterrent to institutional investors and adoption as peer-to-peer money. While it has been rallying this year, it has not had the wild volatile swings seen in previous bull runs - and this could improve its investment appeal.

Bitcoin is holding onto gains as we head into a new week. Since returning above five figures on Tuesday, BTC has pulled back slightly from a new 2020 high on Feb. 13.

Today prices are hovering slightly below $10,000 as BTC finds a new consolidation zone.

Bitcoin Volatility Falling

Cryptocurrency investor and researcher 'Ceteris Paribus' (@ceterispar1bus) has been delving into maximum intraday movements for Bitcoin, Ethereum and Tezos. Taking an average of these over time can help determine whether BTC's volatility is rising or falling.

The findings indicate that the difference between Bitcoin's daily highs and lows is around four percent, while Ethereum stays at six percent and Tezos at nine percent.

YTD max daily intraday moves for BTC/ETH/XTZ

Averages:$BTC: 3.96%$ETH: 6.14%$XTZ: 9.14%

i.e. the difference between bitcoin's high and low every day averages ~4%. It averages ~6.1% for eth and 9.1% for tezos. pic.twitter.com/x0BYwLaWWk

- Ceteris Paribus (@ceterispar1bus) February 15, 2020

He added that this is good when we are in a bull run but can quickly destroy value if market sentiment shifts.

A chart from Coinmetrics indicates that BTC volatility is currently at its lowest levels since November 2018. This is a good sign, especially when considering that the asset has gained 43% so far this year.

Volatility and wild price swings are off-putting to traditional investors who often seek more
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