Bitcoin

April

<a href="https://en.coin-turk.com/bitcoin-supply-stagnates-at-26000-is-it-a-signal-of-over-selling-in-the-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a>‘s (<a href="https://en.coin-turk.com/bitcoins-future-bitcoin-in-a-consolidation-phase-michaal-van-de-poppe-says/" data-wpel-link="internal" rel="noopener noreferrer nofollow">BTC</a>) volatility has been increasing since the beginning of October, and analysts expect this trend to continue. Meanwhile, geopolitical uncertainty remains a risk factor on the sidelines in triggering a flight from risk in the cryptocurrency market.
Bitcoin’s volatility increased in the first week of October, and analysts expect the increase in volatility to continue for the rest of the month. According to a report published by Bitfinex Alpha on October 9, Bitcoin has shown higher volatility than its average of the last 200 days since the beginning of October. The report highlighted that volatility in major stock indexes first increased before spreading to other risk assets like BTC, citing a historical trend. Analysts noted that the S&amp;P 500’s volatility index rebounded from its lowest level in years on September 15.
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The report stated, “Isolated high volatility events in Bitcoin and altcoins continue to increase, and it is likely that this trend will continue as historical volatility remains above significant averages.” One of the mentioned isolated high volatility events occurred on October 2, when historical 24-hour volatility increased by over 340%. Furthermore, it was noted that the implied volatility of the Bitcoin options market remained above historical volatility in October and that this increase was synchronized with similar volatility increases in US stocks.
Bitfinex analysts also added, “The options market is currently pricing in more volatility for Bitcoin, as it has done in the past. Implied volatility is currently at 37.8%, while historical volatility is at 32.4%.”
<h2 style="text-align: justify" id="eyes-on-us-cpi-data">Eyes on US CPI Data</h2>
Luke Nolan, Research Director at CoinShares, highlighted the US inflation data scheduled for October 12 as another factor that could lead to a new increase in volatility in the cryptocurrency market. Nolan expects US inflation data to be a turning point for volatility in Bitcoin and altcoin markets.
Nolan pointed out that inflation in the US is expected to come in lower than expected, with the expectation revised down from 3.8% set in August to 3.7%. Nolan added, “This is likely to have an impact on the cryptocurrency market and increase volatility.”
However, following the attack by Hamas in southern Israel over the weekend, oil prices rose, leading to the addition of geopolitical risk premium to commodities. The two major crude oil indicators showed an increase of about 4% on October 9. Higher oil prices pose a significant obstacle to the Fed’s goal of reaching 2% inflation.
Bitcoin’s price is currently finding support above the $27,000 level, supported by the dynamics between short and long-term investors. According to Bitfinex analysts, while the BTC supply under the control of short-term investors has decreased by about one million BTC since April 13, the BTC supply under the control of long-term investors has increased by over one million BTC during the same period. Continue Reading: <a href="https://en.coin-turk.com/bitcoins-volatility-is-increasing/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/bitcoins-volatility-is-increasing/</a>

Bitcoin’s Volatility is Increasing

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