Bitcoin’s volatility spiked in February, hitting its highest reading since April 2020 in a month when the cryptocurrency price hit new highs.
The 30-day annualized volatility of the digital currency hit 114.51% on February 8, the highest level since April 10, 2020, data provided by asset manager Blockforce Capital shows.
That figure was well above the historic 30-day volatility of 63.78% bitcoin had since 2013, according to additional figures from Blockforce Capital.
The digital asset saw these sharp changes in value during a bullish month, where its price hit an all-time high of $ 57,487.03, according to figures from CoinDesk.
At this point, digital currency has grown by more than 73% in February, additional data from CoinDesk shows.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Another bullish year
Bitcoin has had a great year so far, nearly doubling its price to around $ 28,900 at the start of 2021.
These latest gains have built on the bullish momentum the cryptocurrency has seen since falling to a local low of less than $ 3,900 in March of last year.
Digital currency has climbed almost 1,400% since it fell to this point.
Bitcoin prices have shown greater resistance during the current uptrend than they have during the 2017-2018 bull market.
In December 2017, bitcoin hit nearly $ 20,000 on CoinDesk, but was unable to hold onto those gains, falling below $ 10,000 the following month.
Digital currency has followed a downtrend, dropping to nearly $ 3,000 in December 2018.
In the future, no one knows for sure where bitcoin prices will go.
However, many market watchers have made some very bullish predictions for cryptocurrency, Anthony Pompliano, a well-known analyst predicting earlier this year that bitcoin could potentially reach $ 1 million.
Vinny Lingham, co-founder and CEO of Civic, offered a more conservative contribution, saying bitcoin could reach between $ 100,000 and $ 125,000 over the next year without suffering a “crash,” which could cause it to lose more. of 80% of its value. .
However, he noted that if Fear of Missing Out (FOMO) kicks in, bitcoin could hit “$ 250,000- $ 400,000” over the next 12 months, a rally that would result in an “inevitable” pullback that could turn out to be quite serious.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.