Amid economic uncertainty and a halving, the volatility of bitcoin surges in 2024.
Acc to Odaily reports that Glassnode data shows that there have been notable swings in the weekly implied volatility of Bitcoin during 2024. Although there were small increases in this important market sentiment indicator in early January and mid-February, it started the year with relative steadiness at around 50%. However, traders braced for possible market upheaval as Bitcoin neared its April halving event, and volatility spiked, reaching above 80%. Although there was a brief decrease following the halving, volatility reappeared in the middle of the year due to heightened market uncertainty, which may have been caused by changes in macroeconomic and regulatory conditions.
In contrast to the more stable climate of 2023, 2024 exhibits an increasing tendency in volatility when compared to a wider historical context. The continuous increase in this indicator points to a more speculative trading environment following the halving, indicating that traders are taking shorter-term market risks into consideration. This tendency is likely to continue as market participants negotiate the shifting regulatory environment and developments in the global economy that affect Bitcoin price movements.
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X : cryptomantr