Bitcoin 30-Day Volatility Archives

Data shows the Bitcoin 7-day volatility has come alive during the last week as the collapse of crypto exchange FTX has shaken up the market.

Bitcoin 7-Day Volatility Has Spiked To Values Above 7%

According to the latest weekly report from Arcane Research, the current 7-day volatility levels are the second highest seen in this year.

The “volatility” is an indicator that keeps track of the average daily returns in the price of Bitcoin over a specific period of time.

While this timespan can be of any length, the “7-day” and “30-day” versions of the metric are the most natural.

A notable feature of the volatility indicator is that it only measures returns using the closing prices on each day. This implies that any intraday market movements aren’t accounted for by the metric, so as long as the price returns to the norm by the end of the day.

When the volatility has a high value, it means the price of the crypto has fluctuated a lot recently. On the other hand, low values suggest the BTC market has been displaying stale activity.

Now, here is a chart that shows the trend in the Bitcoin 7-day and 30-day volatilities over the past year:

Looks like the values of the metrics have spiked up in recent days | Source: Arcane Research’s Ahead of the Curve – November 15

As you can see in the above graph, both the 7-day and 30-day versions of the Bitcoin volatility have observed a sharp increase recently.

Before this rise, the indicator had very low values for a month or so, with the 7-day version especially reaching historical lows of 1%.

The collapse of FTX and the resulting market crash is behind the crypto’s sudden turn to volatile nature during the last week.

The 7-day volatility has surged above the 7% mark, reaching levels only behind the yearly high of June, when 3AC went bankrupt.

Historically, Bitcoin has become calmer following big spikes in the volatility like the one being observed right now.

However, the report notes that the current market environment is filled with contagion-related uncertainty and abnormal positioning in derivatives, so the market will likely continue to be volatile in the coming days.

BTC Price

At the time of writing, Bitcoin’s price floats around $16.7k, down 5% in the last week. Over the past month, the crypto has lost 12% in value.

The below chart shows the trend in BTC’s price over the last five days.

The value of the crypto seems to still be consolidating around $16.7k | Source: BTCUSD on TradingView
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research

Bitcoin 30-Day Volatility Currently Has A Value Of Just 1.7%

As per the latest report released by Arcane Research, BTC’s price stabilizing around $20.5k has resulted in the daily volatility remaining low.

The “daily volatility” is an indicator that measures the percentage changes in the daily closing price of Bitcoin averaged over a specific period of time.

While this timespan can be of any length, the 7-day and 30-day volatilities are the most common and useful version of the metric.

When the daily volatility has a high value, it means the crypto’s price has been observing large fluctuations recently.

On the other hand, low values of the indicator suggest that the market has been stale during recent days.

Now, here is a chart that shows the trend in the Bitcoin weekly and monthly volatilities over the past year:

The value of the two metrics seems to have been pretty low in recent weeks | Source: Arcane Research’s Ahead of the Curve – Nov 1, 2022

As you can see in the above graph, the 7-day Bitcoin volatility has been at a low level for a while now, and the 30-day version of the metric has also plunged down recently.

The 7-day volatility has actually slightly gone up in the last week as a result of the rally, reaching a value of 2.2%. This is, however, still notably lower than the 3.1% yearly average of the indicator.

After the monthly volatility’s recent decline, the metric has hit around 1.7%, a low level not seen since two years ago. The reason for such low values of this indicator is the endless consolidation that the crypto observed around the $19k level.

While there has been some burst of activity recently, it hasn’t been enough to make a dent on this timescale.

Another contributing factor is that since the initial chaotic increase, Bitcoin has once again fallen back to sideways movement, this time around the $20.5k level. This is why the 7-day volatility, though higher than before, is still historically low.

BTC Price

At the time of writing, Bitcoin’s price floats around $20.4k, down 1% in the last week. Over the past month, the crypto has gained 6% in value.

The below chart shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has so far held above the $20k mark | Source: BTCUSD on TradingView
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research