[2018-06-22] Bitcoin is mature and less volatile, a research study claims

[ruthbabe]

Bitcoin price analysis: BTC/USD plummets mercilessly into another double bottom pattern; An American research institute claims Bitcoin is mature and less volatile

• The study took data from major currencies including Bitcoin, Ethereum, Ripple, and Litecoin.
• BTC/USD is trading slightly below $6,500, but the immediate support at $6,480 is still holding ground.

The cryptocurrency market is not just bleeding on Friday morning (GMT), it is sinking in the sea of red rough waters. Bitcoin price particularly has declined more than 3% on the day. The rest of the digital assets are also making considerable falls. Bitcoin is trading a double bottom pattern, but we will come to that in a bit.

In the meantime, the American Institute For Economic Research (AIER) is said to have released a report that indicates that Bitcoin, the king of the cryptos has not been as volatile in comparison to other virtual currencies. The institute is independent of all third parties or special interest groups. The volatility data has been taken since the year 2013 and speaks of the maturity of Bitcoin. The study took data from other major currencies like Ethereum, Ripple, and Litecoin. The researchers at AIER explained how they reached to their conclusion saying:

“Economists and statisticians measure a variable’s volatility in many ways. We choose a relatively simple metric: the average daily percentage change in price. We average the absolute value of daily percentage returns for each cryptocurrency and year.” The researchers added, “By our measure, in every year, Bitcoin is the least volatile of the five cryptocurrencies we study (we also looked at coefficients of variation, a more technical measure, which yielded similar results). Bitcoin reached its lowest average daily price movement, less than 2 percent, in 2016, before rising again to levels not seen since 2013,”

More... https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-analysis-btc-usd-plummets-mercilessly-into-another-double-bottom-pattern-an-american-research-institute-claims-bitcoin-is-mature-and-less-volatile-201806220834

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[buwaytress]

Mature is true, but only in relation to cryptocurrency in general, and how quickly things move and evolve here. I'd say 4% volatility is a pretty good figure (surprised me actually) but you'd expect that in a low-volume, bearish market. I suppose once the bull market kicks in again, that price, volume spiking, all going to make those numbers up again.

I'm actually still hoping for a bit of volatility, that's got to happen if we really want to see 6 figure BTC prices. These teenagers just mature so quickly these days, don't they?

[Lancusters]

Bitcoin volatility is reduced due to the fact that the demand for all cryptocurrencies has fallen. This is the consequences of the fact that through futures on the market came a lot of capital. They are interested in reducing the volatility of bitcoin and thus ousting all small traders from the market. To make money on bitcoin will be possible only on the volume of sales and for this you need to invest a lot of money.

[1Referee]

It differs. If you put Bitcoin's volatility against the volatility that altcoins experience, then it's indeed less volatile, but it has its reasons for that.

The first reason is that Bitcoin's market is far more liquid, and the second reason is that people during corrections sell altcoins for Bitcoin which strengthens its position in the market as well. People don't trust altcoins, they just hop on board during increases since they need less money coming in to book higher gains. Once the party is over, they jump back in Bitcoin to protect their overall Bitcoin ratio.

Bitcoin goes up 2% altcoins 4-5%
Bitcoin goes down 2% altcoins 4-5%.

It's just a matter of timing your entry and exit points.

[hatshepsut93]

I don't agree that it is mature, since it's still rarely used as a currency or as store of value, especially by companies and institutional investors - its main use case is still "getting rich quick" by retail investors. It's definitely more mature than before, but we can only call it truly mature when it will be less of a speculative asset and more of a money.
But I agree that volatility is decreasing, the recent ATH was just part of the cycle and we shouldn't see something like that anytime soon.

[dunfida]

It isnt mature.

With this line "• BTC/USD is trading slightly below $6,500, but the immediate support at $6,480 is still holding ground."

Then what do we called on the current situation of bitcoin on yesterdays price and as of this current? Ive remembered we are playing around 6.7k usd price but now we are almost heading on 6000 price (6116usd) as of writing.

Bitcoin wont really come to a point on less volatile or stable.There might be some instances on minimal movements but those are just normal not a permanent thing.

[ParRus]

Bitcoin volatility is reduced due to the fact that the demand for all cryptocurrencies has fallen. This is the consequences of the fact that through futures on the market came a lot of capital. They are interested in reducing the volatility of bitcoin and thus ousting all small traders from the market. To make money on bitcoin will be possible only on the volume of sales and for this you need to invest a lot of money.

I fully agree with you, there is no demand for bitcoin either because it's summer now, and many investors went on vacation. Now the most affected are young traders who all hope for a quick recovery. But I think before autumn it will not happen.

[bbc.reporter]

@ruthbabe. I assume that article was written several minutes before the latest bitcoin dumpage hehehe. It has never showed any maturity because the main holders of the coin is still made up of the early adopters of 2010 or 2011, I reckon. Those early adopters might be as inept in investing as you and me hehe.

[Snaic]

The volatility of bitcoin was, is and will be, most likely, always. It's his nature. The fact that bitcoin is practically on the spot now seems to be a coincidence and a consequence of the lack of demand and, in general, good trade with bitcoin. After a while we will again see the same great volatility bitcoin, nothing happened and will not happen, which could affect its degree of volatility. These short-term studies of its volatility absolutely do not mean anything in practice.

[liberty02]

It isnt mature.

With this line "• BTC/USD is trading slightly below $6,500, but the immediate support at $6,480 is still holding ground."

Then what do we called on the current situation of bitcoin on yesterdays price and as of this current? Ive remembered we are playing around 6.7k usd price but now we are almost heading on 6000 price (6116usd) as of writing.

Bitcoin wont really come to a point on less volatile or stable.There might be some instances on minimal movements but those are just normal not a permanent thing.

Yes I was also going to say the same thing when I checked the price as of right now, it is hovering still in the $6,100 range right now Bitcoin is still volatile, it might change in the future. Also the number of Coins is till not finished as some are still mined today, after all the coins have been released to the market then maybe that is the time that a study could be done when the price settles down and does not move as much. That is when we could say that it may have matured already.

[ruthbabe]

Mature is true, but only in relation to cryptocurrency in general, and how quickly things move and evolve here. I'd say 4% volatility is a pretty good figure (surprised me actually) but you'd expect that in a low-volume, bearish market. I suppose once the bull market kicks in again, that price, volume spiking, all going to make those numbers up again.

I'm actually still hoping for a bit of volatility, that's got to happen if we really want to see 6 figure BTC prices. These teenagers just mature so quickly these days, don't they?

Yes. Teenagers these days are far different from (the same age) those that were born 20 years ago or beyond, technology might be the reason. I was thinking these AIER researchers are good traders too, maybe they're mathematicians who can analyze and predict market prices.

[Kronos21]

I have long been a skeptic and do not believe any research. All of them are held for some purpose and we never know who finances them. I'm not interested in the degree of volatility. I always react to trading signals. Very soon I expect the market to reverse and that makes me happy. If this growth will be long and stable I will only please.

[Dilerium90]

Now it's time for deep falling in my opinion. Of course it's the lowest price for year now, but it's the only one chance for big traders to by bitcoin for 3000-4000$. Looking forward what happen, if it will go deeper.

[felixesteban]

Unfortunately, it is not possible to participate in both claims. Bitcoin price was $ 20 thousand at the beginning of 2018, and now this figure is about $ 6 thousand. It's absurd to say that there's no volatility in this situation. Sometimes the price fluctuation in the day is about $ 1000. I don't agree with that it is mature as well, on the contrary, in the process of crawling. I think toddler would be the the best expression to describe it.