Bitcoin exceeds five figures for 63 days in a row, what does it mean?
The evolution of the price of BTC throughout 2020 has been interesting, however, one of the milestones that we can highlight the most is that it has just over two months above US $ 10,000. Now, it is valid to analyze a little more this event in which Bitcoin exceeds five figures for so long.
Is this the first time that Bitcoin has been in five figures for so long?
With the closing of this Sunday, Bitcoin managed to overcome the previous streak of 62 days with a price above US $ 10,000. Specifically, Sunday was the 63rd day on which Bitcoin closes above this limit, consecutively.
The previous record was set from December 1, 2017 to January 31, 2018, for a total of 62 consecutive days with BTC valued at over $ 10,000. It was around that date that Bitcoin changed hands for $ 19,900 on Coinbase. Bitcoin’s takeoff at the time was unprecedented.
The reality is a bit different in this case, since in these 63 days the price fluctuations have not been so violent. By contrast, Bitcoin’s last extended period above the five-digit major mark has been “stable.”
The range of movement has been quite tight, between $ 10,000 and $ 12,500. This has resulted in the volatility of the 180-day returns for Bitcoin plummeting 41%, in September alone, according to CoinDesk and Coin Metrics.
That is, those who are betting on short operations can obtain benefits, but not as great as those that could be expected in a context of extreme volatility.
Analyzing the price of BTC
As of this writing, Bitcoin is worth $ 10,887.10. This represents an increase of 1.35% in just 24 hours. However, remembering what we mentioned earlier about the asset’s decreased volatility, we could say that it is still within the narrow range of variation explained.
This makes us think of the countless times Bitcoin has been criticized for being too volatile. However, recent research and reports suggest that Bitcoin has been more stable than other assets or stocks, such as those of Tesla.
«People always assume that Bitcoin is incredibly volatile, but it is no more volatile than many popular tech stocks.“Said Skew Co-Founder and CEO Emmanuel Goh.
In this specific case, Skew has published that while Tesla has seen its shares fall by 18% to date, in the case of Bitcoin this drop has been less than 8%.
However, since last week, the cryptocurrency has faced some selling pressure. We can also confirm this with Bitcoin whales, as we explained in our latest report on the matter. Therefore, it may be that the continuation of this pressure for a long time can change things a bit.
Related
