Bitcoin 7-Day Volatility Comes to Life as FTX Crash Shakes Market – Geeks World Wide

Originally posted here.
By: Hououin Kyouma
Overview
Data shows that Bitcoin’s 7-day volatility came alive over the past week as the crash of cryptocurrency exchange FTX rocked the market. Bitcoin 7-Day Volatility Soared To Above 7% Current 7-day volatility levels are the second highest recorded this year, according to Arcane Research’s latest weekly report. “Volatility” is an indicator that tracks the average daily returns of the price of Bitcoin over a given period of time. While this time period can be of any length, the “7 days” and “30 days” versions of the metric are the most natural. A notable feature of the volatility indicator is that it only measures returns using each day’s closing prices. This implies that any intraday market movements are not accounted for by the metric, as long as the price returns to normal by the end of the day. Related reading: This indicator suggests that US investors sold Bitcoin harder than others during the crash. When volatility is high, it means that the price of the cryptocurrency has fluctuated a lot recently. On the other hand, low values ​​suggest that the BTC market has shown stale activity. Now, here’s a chart showing how Bitcoin’s 7-day and 30-day volatilities have progressed over the past year: It looks like the metric values ​​have increased over the past few days | Source: Arcane Research’s Ahead of the Curve – November 15 As you can see in the chart above, both the 7-day and 30-day versions of Bitcoin’s volatility have recently seen a sharp increase. Prior to this hike, the indicator had very low values ​​for about a month, with the 7-day version mostly hitting all-time lows of 1%. Related Reading: Glassnode Suggests Bitcoin Long-Term Holder Conviction Not Yet Lost The FTX crash and subsequent market crash are behind the cryptocurrency’s sudden turn toward a volatile nature over the past week. The 7-day volatility surged above the 7% mark, reaching levels only behind June’s yearly high when 3AC failed. Historically, Bitcoin has become calmer following large volatility spikes like the one observed right now. However, the report notes that the current market environment is filled with contagion-related uncertainty and outlier positioning in derivatives, so the market will likely continue to be volatile in the coming days. BTC Price At the time of writing, the price of Bitcoin is hovering around $16.7k, down 5% over the past week. Over the past month, the cryptocurrency has lost 12% in value. The chart below shows the BTC price trend over the past five days. The value of the crypto still appears to be consolidating around $16.7k | Source: BTCUSD on TradingView Featured image by Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research
The mail
Data shows that Bitcoin’s 7-day volatility came alive over the past week as the crash of cryptocurrency exchange FTX rocked the market.
Bitcoin’s 7-Day Volatility Has Soared To Values ​​Above 7%
According to Arcane Research’s latest weekly report, current 7-day volatility levels are the second highest recorded this year.
“Volatility” is an indicator that tracks the average daily returns of the price of Bitcoin over a given period of time.
While this time period can be of any length, the “7 days” and “30 days” versions of the metric are the most natural.
A notable feature of the volatility indicator is that it only measures returns using each day’s closing prices. This implies that any intraday market movements are not accounted for by the metric, as long as the price returns to normal by the end of the day.
When volatility is high, it means that the price of the cryptocurrency has fluctuated a lot recently. On the other hand, low values ​​suggest that the BTC market has shown stale activity.
Now, here is a chart showing how Bitcoin’s 7-day and 30-day volatilities have gone over the past year:
Metric values ​​appear to have increased over the last few days | Source: Arcane Research’s Ahead of the Curve – November 15th
As you can see in the chart above, both the 7-day and 30-day versions of Bitcoin’s volatility have seen a sharp increase recently.
Prior to this hike, the indicator had very low values ​​for about a month, with the 7-day version mostly hitting all-time lows of 1%.
The crash of FTX and the subsequent market crash are behind the sudden turn of the cryptocurrency towards a volatile nature during the last week.
The 7-day volatility surged above 7%, reaching levels only behind June’s yearly high when 3AC failed.
Historically, Bitcoin has become calmer following large volatility spikes like the one observed right now.
However, the report notes that the current market environment is filled with contagion-related uncertainty and outlier positioning in derivatives, so the market will likely continue to be volatile in the coming days.
Bitcoin price
At the time of writing, the price of Bitcoin is hovering around $16.7k, down 5% over the past week. Over the past month, the cryptocurrency has lost 12% in value.
The chart below shows the BTC price trend over the past five days.
The value of the crypto still appears to be consolidating around $16.7k | Source: BTCUSD on TradingView
Featured image by Jievani Weerasinghe at Unsplash.com, TradingView.com charts, Arcane Research

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