As the COVID-19 pandemic is relaxing in some major nationalities, it seems like the cryptocurrency department is still managing to hold its position in the economy. Regardless of how cryptocurrencies are going stable in the market, bitcoin’s price volatility decreased to its lowest resulting in the most drop out crypto for the last four months. Although there were impressive rises from the world’s most popular digital currencies and was trading somewhere between the trade line of $9,000 and $10,000.
According to the data provided by the blockforce Multi-Strategy Fund, On July 1 bitcoin seen a spike as roughly as 10% resulting to impress the analysts. But who had known that the predictions for this crypto can anytime cease to amaze us? On the closing of the last trading month, it’s been observed that the average volatility of the last months was 45.60%. This percentage of volatility was as low as since recorded back on February 18.
The price action of Bitcoin might not be last
Many analysts have made statements that the last month was very low for every economy worldwide because of Covid-19. Michael Conn, The CEO, and co-founder of the fund Zilliqa Capital which is based in Singapore stated that:
I think investors generally took a wait and see approach with BTC during June.
He also said that the pandemic has shacked the economy stage center globally and sure it will take time for cryptocurrency to relocate its previous stability. His words were:
a month with widespread social and Corona related headlines taking center stage globally.
While on the same side, this situation was very unlikely for others at the same time. The research director of Trade Block John Todaro commented that:
Most of the expectation regarding a price rise from the halving is expected later on and not immediately following the halving—given that to an extent some of this was priced into bitcoin prior to the actual event taking place,
It came to under observation that, many analysts have thought that the low volatility would not have any impact on the price of bitcoin. Although the vo9litality was very low, it does not mean that the prediction can ever go right. The chief investment officer of Arca Jeff Dorman noted:
The last two times we saw volatility this low, the market ultimately reacted violently (March/April 2019, right before a single day 25% BTC gain and Nov 2018, right before a 50% BTC decline),
By the end of the last trading month, Cardano and Ethereum have shined throughout the month. The low volatility may foreshadow the prices of bitcoin.