Realized volatility is an indicator used to demonstrate the magnitude of daily price movements in both up and down directions for a specific period of time in the past. In the case of the Bitcoin (BTC) network, it has skyrocketed over the past week.
One more painful achievement
The Skew analytics team, which addresses cryptocurrency derivative market statistics, announced that Bitcoin (BTC) has not been this volatile in three years.
On their chart, four lines show the volatility in periods of 10-days, 1 month, 3 months and one year. It looks like current figures exceed the numbers of turbulent July 2017, and even December 2017, by a wide margin.
Such insane volatility can be explained by the market panic and the scarcity of liquidity after the huge sell-off on both derivatives and spot exchanges.
New records to come?
Unfortunately, this massacre may be very far from over. As revealed by some top analysts, within periods of extreme market fear, crypto prices show a very strong correlation to what is happening on classic markets, particularly stocks and gold.
That said, the fact that investors haven't reacted positively to the Fed's latest steps - rate cuts and liquidity injection - suggests that the market could be bearish for Bitcoin (BTC) holders. As reported by U.Today, the stock exchange drop that occurred today has already resulted in another painful correction of the crypto king's price.
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