The volatility in the price of a bitcoin is falling over time, or not.

[XUNing]

More people choose to invest in Bitcoin, and the transaction volume will increase accordingly, so its market value will continue to increase, and its volatility will become smaller and smaller.
More people are aware of the benefits of Bitcoin, which has strengthened its consensus and demand has continued to increase. However, Bitcoin is scarce and its total amount is fixed. So this supply-demand relationship will cause the price to continue to rise, so volatility Will decrease over time.

[1714900798]

1714900798

[1714900798]

1714900798

[1714900798]

1714900798

[Kittygalore]

It's probably just a coincidence, I mean there hasn't been any big scams like Bitconnect and OneCoin that happened in the past year so I don't think that there wasn't that much negative movement for the market plus people are more open minded now compared to back then so it's really just makes the movement less volatile since people knows that things happen and everything will eventually bounce back.

[fullhdpixel]

Decreasing isn't stability mate, even if the volatility chart goes to the lowest this isn't any where close to stability, all I can see here is massive adoption rate only and that doesn't mean people won't dump when they need money, accept how BTC works and enjoy while doing that

But if the movements in the market becomes less erratic, that's already stable meaning that a collapse won't happen so yes decrease in volatility is stability. Also, I don't really feel the volatility going down because it feels like it's like that ever since, we just didn't notice it.

Volatility decreases but it is because of the price, not because of the stability or anything else in bitcoin. When you are at 4k, going to 8k is simple, when you are at 40k, going to 80k is hard. That's all this is about, and I am sure that in 10 years we will see a lot less volatility. Will this help us? Depends, what do you want from bitcoin? Is it making more money from bitcoin investment? Then you are not going to earn too much money because making 5x is no longer viable in bitcoin, possible but not common and easy whereas it was very easy just a few years ago. If you want to see bitcoin adopted more and want to spend it in other places?

Yes, you will gain a lot from this because with lack of volatility people will be accepting bitcoin a lot more. These are the difference between high price and low price, in one you make more profit, but in other you spend it in more places.

[goldade]

It is true that the volatility of bitcoin is actually decreasing over time. I could remember how volatile the price of bitcoin was as at 7 years ago and compared to now, it is truly evident that the volatility has greatly reduced.
At this rate of decreasing volatility, it is possible, in fact it will happen, that bitcoin would become nearly stable, if not totally stable in the next few years and then bitcoin would become the currency it was really made as.

[Wong Gendheng]

It is true that the volatility of bitcoin is actually decreasing over time. I could remember how volatile the price of bitcoin was as at 7 years ago and compared to now, it is truly evident that the volatility has greatly reduced.
At this rate of decreasing volatility, it is possible, in fact it will happen, that bitcoin would become nearly stable, if not totally stable in the next few years and then bitcoin would become the currency it was really made as.

A large market cap is a factor that makes bitcoin volatility more stable, 7 years ago the market cap was only about 10% from now so that it makes it easy for 1 investor to make a pump or dump, especially now that many companies and stock exchanges are using bitcoin as a product so that it will play a role in maintain the stability of the bitcoin price.

[odolvlobo]

Updated 2021-09-08

Previously, I stated that the volatility is falling over time. If you look at long-term graphs, that seems to be the case. However, the volatility as measured by the 33-day CoV seems to have actually risen slightly over the last 7 years. My explanation is that even though adoption has increased tremendously, the use of Bitcoin as a savings device has removed enough liquidity from the market to counter the effects of adoption.

[Levero]

Over time, bitcoin is used in more countries and gradually legalized, and its volatility will gradually decrease.
The supply of bitcoin is limited and the quantity is fixed. As more people use it and spread widely around the world, the value of bitcoin will continue to increase, price changes will become smaller and volatility will decrease.

[zanezane]

Over time, bitcoin is used in more countries and gradually legalized, and its volatility will gradually decrease.
The supply of bitcoin is limited and the quantity is fixed. As more people use it and spread widely around the world, the value of bitcoin will continue to increase, price changes will become smaller and volatility will decrease.

Is there a proof to that because I find it hard to believe that the only way to cure the volatility of bitcoin is having just more people using it because wouldn't that mean that when there's more people in the market we will see the market much more volatile?

[Argoo]

It seems logical. The higher the market cap, the lower the volatility, because it takes a lot more money to vary the price. And in the future there will be even less volatility, as the price increases.

It still seems to me that there will always be high price volatility in this market. Yes, the higher the capitalization of bitcoin, the more difficult it is to move its price, this requires larger amounts to sell or buy bitcoins. However, it is also worth considering that the number of market participants will also increase, and the collusion of whales, panic in the market will always be. In addition, there is a significant difference in whether the price of bitcoin drops from $ 52 to $ 46, or from $ 52,000 to $ 46,000. Although the percentage drops are the same, in a purely practical sense, there is a big difference.

[Lubang Bawah]

Over time, bitcoin is used in more countries and gradually legalized, and its volatility will gradually decrease.
The supply of bitcoin is limited and the quantity is fixed. As more people use it and spread widely around the world, the value of bitcoin will continue to increase, price changes will become smaller and volatility will decrease.

I think the interesting thing about bitcoin is its high volatility, this gives us the opportunity to buy cheaply when the price drops and gives big profits if we hold on and be patient, I'm sure if more countries legalize bitcoin the price will skyrocket but there will always be whales which will have an impact on bitcoin volatility.

[ILuckyGuyI]

After seeing the recent big drop in the price, I don't think that the volatility in the price is falling. It is the opposite and we can witness really interesting price changes. For example, Bitcoin price plummeted by 10k dollars recently in only half an hour. And I must admit that it was really scary as we witnessed such thing for the first time I guess. I think this proves that we will never see a change in Bitcoin's volatility in the future also.

[cafucafucafu]

Definitely good to see that bitcoin volatility is going down.

Shouldn't really come as a surprise to anyone given the recent influx of funds from institutional investors. They are much more likely to hold for long periods of time and not play the markets for the short run.

After seeing the recent big drop in the price, I don't think that the volatility in the price is falling. It is the opposite and we can witness really interesting price changes. For example, Bitcoin price plummeted by 10k dollars recently in only half an hour. And I must admit that it was really scary as we witnessed such thing for the first time I guess. I think this proves that we will never see a change in Bitcoin's volatility in the future also.

But how often are you seeing these dumps now? Compared to a decade ago when flash crashes were so rampant.

[Marcorey]

With the popularity of the digital economy trend, Bitcoin has brought us a lot of benefits and value, and people's consensus on it has continued to increase. Now more and more investors choose to invest in Bitcoin and hold it for a long time. The liquidity of the market will also weaken, and price changes and volatility will also be reduced.

[LUCKMCFLY]

I would not trust certain study parameters, I understand that it can help or be as an indicator for us, but the market for BTC and cryptocurrencies in general will always have volatility, I think that even if globally BTC achieves adoption it could not be more stable or gradually eliminating volatility, this market at any moment can take the least expected movement, as it happened a few days ago, everyone believed that BTC was heading to $ 55k and then to $ 60k, but its price fell more than 12 %, another show of volatility so large in a short time means a lot.

[paxmao]

yes good point. The fact is that volumes of traded bitcoin have been increasing and there are many large actors playing with it. It means that for the price of bitcoin to suffer a significant volatility like a few years ago, it would require a much larger volume being exchanged. On top of that, the fact that the price is significantly higher multiplies that effect, as it is not a larger volume that needs to be exchanged, but also a much larger amount of capital is required to do so.

[Spack17]

Actually, the volatility rate in the price has never fallen and I'm pretty sure that it won't also. Because you can't change the main feature of a cryptocurrency or it cannot change by itself in time. Bitcoin will always stay as a volatile cryptocurrency so everybody should get used to it. For example, the recent and huge dump was a proof for this. It was a fall around $10k from $52k to $42k.

[swiftbits]

After seeing the recent big drop in the price, I don't think that the volatility in the price is falling. It is the opposite and we can witness really interesting price changes. For example, Bitcoin price plummeted by 10k dollars recently in only half an hour. And I must admit that it was really scary as we witnessed such thing for the first time I guess. I think this proves that we will never see a change in Bitcoin's volatility in the future also.

It's still the same as before, we think the volatility is down because the price becomes stable, no big pumps and dumps, but multiple events can easily influence the price, so after bitcoin thrives and becomes popular, volatile movements become frequent. Bitcoin still operates the way it should be, there's a chance for the volatility to fall not very soon, but I think the chances, for now, are low as we see the community has grown significantly.

[Sithara007]

I don't think that there have been any big change in volatility for Bitcoin. Even now I am witnessing the exchange rates falling or going up by 10%-15% in a single day. That's is still huge, when compare Bitcoin to other assets such as gold, or even stocks. Once in a blue moon, we have a major stock going up by 10%, but such occurrences are very rare. And for gold, the maximum I have witnessed in a single day is 4%. I guess it may take at least a decade for Bitcoin to reach the same level as large-cap and mid-cap stocks.

[perfect999]

I don't think that there have been any big change in volatility for Bitcoin. Even now I am witnessing the exchange rates falling or going up by 10%-15% in a single day. That's is still huge, when compare Bitcoin to other assets such as gold, or even stocks. Once in a blue moon, we have a major stock going up by 10%, but such occurrences are very rare. And for gold, the maximum I have witnessed in a single day is 4%. I guess it may take at least a decade for Bitcoin to reach the same level as large-cap and mid-cap stocks.

I believe that the idea is the long term one and not the short term one. Of course it still doesn't seem too bad right now but that is because the money required to be here also made it very easily manipulated as well. So let's say it was 100 dollars, in order to go up 10% there was a minimal money required, a few million dollars maybe but that was all the money in crypto anyway, hence why it was easy for 10% but impossible to make it 10k overnight, because lack of funds.

Now, we move thousands over night very very easily but the price is high and there are a lot of people who are into crypto nowadays. So like I said, from 100 to 110 and from 50k to 55k all is the same these days because the amount has increased a lot, the percentage stayed the same and the amount of people increased a ton to cover the difference. I personally feel like 500k to 550k will be the same as well but we have to wait and see.

[Shenzou]

I think that this decrease makes perfectly sense, because you see back a few years ago while bitcoin was still in the hundreds, people were able to buy it at decent price and at large quintets due to low price due they were able to influence it easily, but now with the price reaching the 50k it is not as easy for the price to move that much, and that is why in my opinion what made the volatility move slower.