Bitcoin (BTC) Volatility Has Dropped to a Minimum Since February

Bitcoin (BTC) Could Rise After Low Volatility

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Bitcoin volatility is at its lowest level in four months. The reason for this was the relative stability in the cryptocurrency market.

On June 1, the cryptocurrency with the largest market capitalization showed significant growth. The BTC price increased by 10%, but then the value of the asset began to fluctuate around $9,000-10,000. According to Blockforce Capital, the annual volatility in June was 45.60% – the lowest result since February 18, 2020.

Michael Conn, director-general of Singapore-based Zilliqa Capital, believes that in June a significant portion of investors chose a wait-and-see tactic. He noted that this month turned out to be eventful in terms of a pandemic and other shocks for society.

Besides, the main informational guide in the crypto community remained the past Bitcoin halving. Analysts were confident that after May 11, the price of an asset would soar within a month. Despite this, a significant jump in the rate has not yet occurred.

John Todaro does not see anything surprising in this situation. The director of digital currency research for TradeBlock is confident that the exchange rate will rise a bit later. He sees this as a kind of reference to the events of 2017, when, a year after the halving, BTC set a new record.

According to Decred CEO Jake Yocom-Piatt, cryptocurrency will certainly begin to strengthen after halving, but it can take an indefinite amount of time.

The remuneration of miners was halved and they are forced to leave the network due to growing losses. Yocom-Piatt focuses on the fact that, given the decrease in the number of miners, sales growth can only mean one thing – more and more speculators are appearing on the market.

It should be noted that not all analysts are sure of the possible growth of cryptocurrency after May halving. The CEO of the Strix Leviathan hedge fund shared the results of the study and said that Bitcoin halving is unlikely to have a serious impact on the big picture.

Arca’s investment director Jeff Dorman also sees nothing special about Bitcoin’s halving. Dorman believes that halving will not affect the price in the short term. Nevertheless, he agrees with the statement that serious changes in the market often occurred just after low volatility: in November 2018 (+ 25%) and March 2019 (-50%).