Bitcoin BTC Price, Charts, and Info
There can be no assurance that security procedures designed to protect the Trust’s assets will actually work as designed or prove to be successful in safeguarding the Trust’s assets against all possible sources of theft, loss or damage. Our findings are relevant for investors, especially for understanding the dynamics of cryptocurrencies over time and making informed investment decisions. Related to recent times, it seems that the increasing Bitcoin market efficiency proves the fact that this cryptocurrency cannot be utilized to generate remarkable abnormal returns. Moreover, this propriety acquired especially during the pandemic suggests that it may serve as a viable option for portfolio diversification and, maybe, as a safe haven.
Acceleration Phase
While this short timeframe doesn’t warrant sweeping conclusions, it certainly requires close attention to how this trend will develop in the coming months. However, the most notable changes occurred when comparing bitcoin to high-volatility tech assets. The difference between bitcoin and companies like Tesla and NVIDIA has become minimal. Bitcoin’s average annual volatility is only 1.09 times higher than Tesla’s (32.54%) and 1.17 times higher than NVIDIA’s (30.42%). It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade and use Bitcoin and other cryptocurrencies in their everyday lives. The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects.
Inflation and Demand
This study found that Bitcoin serves as a safe-haven against the weekly down movement in Asian stocks only. Bouri et al. (2017b) examined the hedging capability of Bitcoin under global uncertainty using the first principal component of the VIX for developed and developing markets for different investment horizons. Selmi et al. (2018) explored the roles of Bitcoin as a hedge, safe-haven, or diversifier compared to gold under extreme oil price movements by utilizing a quantile-on-quantile approach.
Currently, the Fear & Greed index is at 70 (Greed), which signals that investors have a positive outlook on the market. The Fear & Greed index is a measure of sentiment among cryptocurrency investors. A “Greed” reading suggests that investors are currently optimistic about the cryptocurrency market, but can also be an indication that the market is overvalued. A “Fear” reading, on the other hand, signals that investors are currently hesitant about the cryptocurrency market, which potentially represents a buying opportunity. The coin outperformed the cryptocurrency market, as the total crypto market cap increased by 2.37% in the same time period. Historically, too rapid increases in spot volumes have often preceded major corrections, as in January and April 2025, signaling a possible local peak.
Is Bitcoin volatile?
Bitcoin’s volatility is largely due to its price discovery phase, which is still ongoing after 15 years since its inception. The Sortino ratio, which only considers downside risk, reveals even more about bitcoin’s volatility. With a Sortino ratio of 1.86, nearly double its Sharpe ratio, it’s clear that much of the volatility was to the upside. Bitcoin’s Sharpe ratio of 0.96 from 2020 to early 2024 is a testament to this, meaning investors have been more than compensated for taking on the risk.
Data and methodology
On February 26, 2024, bitcoin experienced its first instance of the Appreciation Phase since March 7, 2017. Bitcoin price phases reflect instances of high or low profit and volatility over the long term. These metrics exhibit a cyclical pattern, offering investors insights into the present market conditions and potential future trends.
As price rises out of the bear market, there is a rise in addresses in profit as seller energy reaches its high, and the number of days below an all-time high peaks just as volatility reaches its low. As price rises out of a bear market, the number of addresses in profit increases, and seller energy reaches its high. This typically happens in a low volatility environment, where the price and percentage of addresses in profit steadily rise until a new all-time high is reached. This is evident in the wide range of price movements, from skyrocketing rises to aggressive drops.
In addition, given the relatively small sample size and the already acknowledged nonnormality of the data, we also computed a nonparametric test statistic. Thus, the Wilcoxon sign rank test has been conducted to test the median significance of abnormal returns and trading volume. A recent example would be the market’s reaction to global economic uncertainty in 2023. As traditional markets experienced volatility due to macroeconomic concerns, some investors turned to Bitcoin as a hedge. This movement can either stabilize Bitcoin if perceived as a safe haven or increase its volatility due to speculative trading. Macroeconomic factors, such as inflation rates, employment data, and broader economic policies, also affect Bitcoin’s volatility.
If you’re thinking of investing in Bitcoin, be sure to select a reliable cryptocurrency exchange first. As shown in the appendix, bitcoin’s price on June 13, 2023, was an unassuming $25,897. However—like an underlying current on seemingly calm waters—a shift in volatility was occurring. In this way, volatility plays a crucial role in understanding the current environment and trends of bitcoin. During this phase, many investors have sold their bitcoin and rotated into other assets. Global on-chain Bitcoin activity and sentiment are subdued, with only steadfast holders or those committed to building in the Bitcoin ecosystem remaining.
Figures 2 and 3 represent the evolution of the 14-day maturity Bitcoin options volatility smile in descending order (from left to right). The results represent two data sets for two separate time periods, in which the VIX was trading at a low price for dataset-I and a high price bitcoin era for dataset-II, as evident from Fig. A handful of cryptocurrency option exchanges to trade Bitcoin options emerged recently, including LedgerX, Bitmex, Deribit, Quedex, Bakkt, and OKEX. As a result, its price is often influenced by speculative trading, where traders buy and sell Bitcoin based on short-term price movements rather than long-term value.