Will Bitcoin Explode in Value? 1 Key Metric to Watch
When it comes to Bitcoin (CRYPTO: BTC), the conventional wisdom is that it is a risky, highly volatile asset prone to sharp price fluctuations. Indeed, for much of its history, Bitcoin has been characterized by very high volatility.
But that may be changing. Since April, Bitcoin's volatility has been on the decline. In fact, it touched historically low levels in late summer. Bitcoin's future price trajectory could depend on this metric, so let's take a closer look.
By just about any measure, Bitcoin's volatility (i.e., how much Bitcoin's price fluctuates within a given time period) is trending down and approaching all-time lows. This first became a phenomenon late last year when crypto traders began to complain that Bitcoin was becoming "boring." Instead of seeing massive price swings daily, the price of Bitcoin seemed to move within a very narrow band. And that same trend has persisted into 2023. If you're wondering why Bitcoin has not been able to punch through the $30,000 mark recently or why there's little to no movement after major news events, this is the reason.
Source Fool.com
