According to research by Skew, Bitcoin price is not as volatile as it is supposed to be.
Bitcoin price can rise and drop thousands of dollars in a day or even an hour. That’s why we hear comments about Bitcoin price fluctuating a lot, and Bitcoin is a very volatile product.
Skew has done a new research to see the fairness of these comments. This research was based on the performance of Bitcoin in the past 1 year, and it was analyzed how much Bitcoin has brought more than 2% gain or loss in 365 days.
Less Than Expected
If we accept this research as absolutely correct, we can say that Bitcoin is not as volatile as it is supposed to be. Because, according to the information shared by Skew, only 53% of the Bitcoin price experienced greater activity than 2% these days. In comparison, the price of oil performed more than 2% in 61% of these days.
Is #bitcoin always volatile? Not so fast!
Bitcoin had an absolute daily return of less than 2% more than half the days over the last year
53% of days to be exact vs 61% for crude oil for instance pic.twitter.com/gJdYV6CPfE
— skew (@skewdotcom) May 27, 2020
This research shows that Bitcoin is not really as volatile as it is supposed to be, but it should be reminded that this data is daily data. If Skew takes into account hourly, weekly and monthly changes, not the daily change in Bitcoin price, a different picture may emerge.