As Bitcoin rose from $ 30,000 to $ 42,000 and again in January, Bitcoin’s annual volatility rose to levels last seen in April 2020, according to a new report from US cryptocurrency exchange Kraken.
January was a rapid leap for Bitcoin, with BTC rising 46% to a new high of $ 41,989 and then falling 32% to below $ 29,000. This has pushed the annual volatility to over 100%, last seen 10 months ago during the infamous fall in prices on Black Thursday.
In early March 2020, the bitcoin price jumped over 40% in a few days from $ 9000 to $ 5,200, increasing volatility from 60% to over 150%.
Despite the increase in volatility, Bitcoin recorded the smallest increase in volatility for the five largest cryptocurrencies by market value (excluding Tether).
Polkadot (DOT) ended the month with the highest volatility of 228%, followed by Cardano (ADA) at 183%, followed by Ethereum (ETH) at 160%. Unlike bitcoins, ETH, DOT and ADA, they avoided major adjustments in January and closed the month near their respective local highs.
Looking ahead, Kraken predicts that the bitcoin price will rise with less volatility in February:
– Considering that February gives an average of six percentage points more than Kahn. This is 15 percentage points less volatile, February can be expected to surpass January and volatility will decrease when bitcoins melt. “