Bitcoin’s dynamic has baffled crypto investors. Once known for its wild swings, the leading crypto has now become a boring asset due to record-low volatility. That is what many experts claim. But should we blindly trust this information?
According to ARK Invest, Bitcoin’s price fluctuations in 2024 have dropped to their lowest levels in history, falling below 50%. For reference, in 2022, this figure was 80%, while in 2018, it exceeded 100%.
Experts are trying to puzzle out what lies behind this dramatic change in Bitcoin’s volatility. Since November last year, Bitcoin’s price has been trading within a narrow range—from $89,000 to $109,000. Analysts estimate that under these conditions, Bitcoin’s volatility does not exceed 22%. This is due to the ongoing battle between bulls and bears, where neither side has emerged victorious yet.
Currently, Bitcoin’s price is moving within an expanding triangle pattern. According to technical analysis, BTC’s volatility is expected to click into gear in February. As a result, Bitcoin’s fluctuations could widen, trading within a range of $88,000 to $110,000.
ARK Invest CEO Cathie Wood believes Bitcoin could skyrocket to an astonishing $1 million this year. Indeed, the higher the uncertainty and volatility in the global economy, the stronger the confidence in Bitcoin. One of the key reasons behind this is the fear of inflation. Expanding on this issue, Cathie Wood emphasized that Bitcoin serves as an excellent tool for hedging inflation risks.
