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

[Yey09]

Its a normal process. We have more and more bigger whales in the game and more and more luqidity on the market. This may normalize volatility

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[bearexin]

At some point we have to realize that volatility is not that much in bitcoin like it used to be, but we also have to accept the fact that volatility will always be higher in crypto than it is on stock markets because things are never the same. Now USA government pushes for a deal where american exchanges will decline to give you your money unless you provide who owns the wallet you are withdrawing, obviously if you withdraw from coinbase to binance you don't have to, so there are other loopholes around it, but they are making sure that if you withdraw to your own wallet, they know you own it and who you are and where you live as well.

These kinds of regulations will make things a lot less volatile as well, people will not be as crazy over bitcoin as they used to be because government will be watching, unregulated and regulated things have different levels of volatility.

[jaysabi]

So does this means that the trading Volume of bitcoin will decrease? If more buyers are just to hold their Bitcoin and no using it at all for it's main purpose then it will not be different from other metals like gold and silver which has low volatilty, and I think it isn't healthy at all in the trading in field.

In one sense, the more people that lock up bitcoin away from exchanges, the shallower the supply pool of available bitcoin gets.  The shallower any asset stock is, generally the more volatile it is because there is the same number of people chasing fewer available pieces of the asset, and the more the price can swing.  Pools that are very large and very liquid generally are not as volatile because of just how much money is required to move the market cap substantially.  An example of this is small cap stocks are generally more volatile than large cap stocks.

But I do think there the market cap is reaching a size where crazy swings will be on the decline.  It'll be interesting to see what happens as more companies lock up millions of dollars of bitcoin at a time, and whether that increases or decreases volatility.

[angrynerd88]

Yes, bitcoin cost instability from year to year appears to have the same design. Where in the event that you've got experienced the splitting, the decrease will happen accordingly. Even we moreover got to pay consideration to how from year to year the supply of bitcoin will be progressively rare and rare. It state that indeed in spite of the fact that the cost of bitcoin has diminished, the potential for increment within the long time will diminish and cannot be anticipated for long term.

[Psynthax]

i assume this somehow correlates with the fact that bitcoin market cap has grown significantly from the money of thos big boys in term of investment flowing in to our market. My logic is that when the market capitalization has grown so huge some million dollars dumping hardly effect the market. Also maybe because people already consider crypto as legitimate thus they assume the risk isnt that high anymore?

[magneto]

With institutional money (especially pension funds), the amount of panic selloffs will only become rarer and rarer. This should come as no surprise to anyone.

This is probably better news than the price rising alone - a major criticism of BTC not being able to function as a store of value was that it was too volatile in the short term. While that argument is in itself fallacious, I think that the decrease in the inherent volatility of BTC in recent years will finally kill this sentiment.

And it's really a positive feedback loop. As BTC becomes less and less volatile, it will incentivise even more institutional investors to increase their BTC stake.

[2double0]

Selling btc is only possible for those who hold it, so not much sales are to be seen as bear whales are looking to be out of btc and exhausted. It also applied to the buying side as it is not easy to buy btc at this high and only true daring people will take a chance.

[Hamphser]

Selling btc is only possible for those who hold it, so not much sales are to be seen as bear whales are looking to be out of btc and exhausted. It also applied to the buying side as it is not easy to buy btc at this high and only true daring people will take a chance.

We are moving sideways but at least the price is trying to break out new resistances and reach up new all time highs which is really great to see in bitcoin market.
Volatility is always there and why cant just people do accept the fact that bitcoins price can correct nor crash anytime this is why profit making will vary
on how you do secure out yourself in times like this.Sell when in profits and then accumulate when it cheap, it might sounds easy but it doesnt.
So it will depend on someones experience and risk management on what would be the actions that he would make.

[AndySt]

Selling btc is only possible for those who hold it, so not much sales are to be seen as bear whales are looking to be out of btc and exhausted. It also applied to the buying side as it is not easy to buy btc at this high and only true daring people will take a chance.

We are moving sideways but at least the price is trying to break out new resistances and reach up new all time highs which is really great to see in bitcoin market.
Volatility is always there and why cant just people do accept the fact that bitcoins price can correct nor crash anytime this is why profit making will vary
on how you do secure out yourself in times like this.Sell when in profits and then accumulate when it cheap, it might sounds easy but it doesnt.
So it will depend on someones experience and risk management on what would be the actions that he would make.

The laws of business are simple to the point of ugliness, but few people manage to constantly comply with them;) Large sales and large purchases at this stage of time depend more on external factors. For example, the current continued growth in the area up for 25 thousand dollars could be influenced by the discovery of a new more contagious mutation of the COVID 19 virus in the UK and the subsequent tightening of quarantine measures and the closure of the borders of states with the UK.

[2double0]

The laws of business are simple to the point of ugliness, but few people manage to constantly comply with them;) Large sales and large purchases at this stage of time depend more on external factors. For example, the current continued growth in the area up for 25 thousand dollars could be influenced by the discovery of a new more contagious mutation of the COVID 19 virus in the UK and the subsequent tightening of quarantine measures and the closure of the borders of states with the UK.

I accept that the need for digital money arose when that mutation took place because everyone now fears using paper money. Apart from that, by saying that those who dare to buy high are taking a chance is because if these companies who are buying btc start taking profits at some point, how big will the sell volume be? Will the buyers (retail investors) be able to hold it there?

[Sithara007]

Even now, Bitcoin is moving up or down by as much as 10-15%, which is quite a lot IMO. It is time for us to admit that high volatility is one of the basic characteristics of Bitcoin. If you want a stable asset to invest in, then you should look for treasury bonds or bank deposits rather than cryptocurrency. Bitcoin is there for investors who can afford some volatility and instability.

[pecson134]

Anything starts with high volatility specially on those with price on its tag since new entrant was still on observation so it will be expected that the price would be so unstable to begin with. The more the time pass and the more something was assessed the lower the molality would become because these can make the price look more stable than before.

[Crislyn4116]

Volatiliy means that there is already established trading activities within the range of market like bitcoin. Simply, traders right now are mostly composed of majority of institutions that provided alot of money or so called liquidity in the market and that sellers or buyers meet in certain price level and are difficult to act without lossing a lot of money on both parties. Thus, it makes sense that despite being in higher high price action of certain financial instrument like bitcoin while decreasing volatility means that the market has stabilized; both situation creates difficulties among them ( sellers and buyers).

In conclusion, decreasing volatility means stabilized market activities but does not guarantee price to go up or down in both scenarios. Prices are speculated in its own direction and does not proved significant correlation with decreasing volatility but to market condition based on bitcoin market data.

[romero121]

Volatility of bitcoin is the veins of the network, because without volatility the market might have gained stability. But, it could've never reached high price as now. The market might have gone less used or it could've gone under any centralized authority. Volatility and bitcoin are something interconnected, see today's market changes. The volume reached $1.04 trillion and now it ha fallen to $984 million. This volatility is used by users which also supports the market get get pushed.

[odolvlobo]

I updated the graph. It now shows the recent increasing volatility. Despite the recent volatility, the trend is still falling.

[Febo]

It is logical that volatility decreased over time and that it will even further decrease in upcoming years. But still I am surprised Bitcoin is still so volatile. Emission is very predictable. Most markets where Bitcoin s traded are regulated. I guess it still needs time. 12 years was just to little of time. 

[so98nn]

The updated chart shows its going brr one more time! However its very normal to have 50% volatility as compared to previous troughs and crests.

Bitcoin will have amazing stability in coming days or months looking at the current rate of investment into it. The economic stability jumps in when liquidity is beaten by market cap.

Idk, there are crazy people out there who might wanna bring the total market cap of bitcoin to 1 trillion now which is a next milestone for it. This will help bitcoin build up swift stage to have lower volatility and more stable upward trend.

[sana54210]

Volatility of bitcoin is the veins of the network, because without volatility the market might have gained stability. But, it could've never reached high price as now. The market might have gone less used or it could've gone under any centralized authority. Volatility and bitcoin are something interconnected, see today's market changes. The volume reached $1.04 trillion and now it ha fallen to $984 million. This volatility is used by users which also supports the market get get pushed.

Volatility is not depending on the marketcap but more about what people do, just because market cap goes up and down (the real volatility we know) is all caused by people and their trading. And I believe the higher price we get, the harder it gets to change the price as well. In order to sell 50k+ bitcoin to drop the price you need to have so much bitcoin that it is in billions, and in order to increase it that much you once again need billions of dollars as well.

This is why it gets harder, and the higher we go, even 10% changes means hundreds of millions of dollars easily, which is why it is harder to do that than how it used to be. Think of it this way, back in the day tesla could have taken bitcoin from 1 dollar to 50 dollars all with their new investment, that is 50x change, today they were only capable of doing 1-2% change all by themselves.

[Dollar_Hunter]

I can't imagine if the volatility of bitcoin is decreasing and the market is like the stock market where volatility occurs,
because in crypto currency trading is very interesting because 10000% can be obtained in one trade which cannot be done in the stock market,
I hope high volatility is always a thing that's interesting in crypto of all time.

[jaresmerel001]

Well it depends on what their bitcoins are doing to those institutions. We had auctions for recovered stolen coins a while back and everyone speculated about what would happen if those large quantities of coins were to enter the market again. We now know that the coins went to the owner who had the coins hoarded, and the price remained stable.

If the owner decided to see all the coins at the same time, the price would have taken a nose dive because of a sudden injection into the supply side of large quantities of coins. It was going to send the markets into a frenzy. This will seen by speculators as a dump and will cause other individual selling their coins to have a trigger effect.

For those institutional buyers, the same goes, if one of them dumps coins worth trillions of dollars into exchanges. Then the price will collapse.(causing volatility a lot)