Bitcoin Trading, Alameda Research, Bitcoin volatility, Three Arrows Capital, Glassnode, Greymatter Capital

Bitcoin traders expect a significant increase in volatility as the leading cryptocurrency continues to recoup nearly all its losses since topping out just below $20,000 in late 2017. Whether the volatility comes from increased buying or selling is a matter of disagreement.

Through bitcoin’s current rally, volatility has remained low. Since late August, 30-day volatility has remained below 0.03 and 180-day volatility has steadily decreased from 0.05, according to data from Coin Metrics.

Over the same period, bitcoin has gained nearly 80% after a brief dip to $10,000 at the beginning of September.

As bitcoin closes in on the much anticipated all-time high mark, some responsive selling should be expected, said Mike McGlone, senior commodity strategist for Bloomberg Intelligence, in an email to CoinDesk.

But a “wave of institutional flows appears to be just getting started and offsetting the relative youth of Bitcoin’s past, keeping its upward trajectory intact,†McGlone added. Any selling at record highs should only “act as a speed bump†to bitcoin’s long-term trajectory, he said.

Regardless of which side of the market investors choose to pile onto, “elevated†volatility in the very near future seems likely, according to Sam Trabucco, quantitative trader at Alameda Research.

Some selling could come from investors looking to realize some paper gains after reaching a historic price level as the number of bitcoin addresses in profit surpassed 98% Monday, according to Glassnode. Not since early December 2017 were there this many addresses in profit on paper.

To Joseph Todaro, partner at Greymatter Capital, reaching a new all-time high will probably trigger significant selling as the market is likely to repeat its reaction to previous all-time highs given that “traders lean heavily on historical price action,†he told CoinDesk in an email.

In 2016, for example, bitcoin’s approach to the then-all-time high was “met with significant sell-side pressure,†Todaro explained. He expects the same response as bitcoin nears $20,000, followed by consolidation and then renewed upward momentum.

The previous all-time high represents a significant inflection point in mainstream interest for bitcoin, said Kyle Davies, co-founder of Three Arrows Capital, in a direct message with CoinDesk. At that point, he expects mainstream interest to accelerate.

Mainstream attention should trigger significant upside volatility, now downward, according to Davies. “We will not see resistance. We will see price discovery,†he said.

Bitcoin Trading, Alameda Research, Bitcoin volatility, Three Arrows Capital, Glassnode, Greymatter Capital
Bitcoin 30-day and 180-day volatility in 2020
Source: Coin Metrics, CoinDesk Research
Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Amid Stern Warnings from China Crypto Firms Huobi and Okex Halt a Few Services

On Friday, the cryptocurrency community discussed a report stemming from China’s 51st meeting of the Central Financial and Economic Affairs Commission that reiterated warnings about bitcoin mining. The following Sunday, reports disclosed the cryptocurrency operation Huobi has suspended its cloud-mining operations and other crypto services to customers in mainland China. Rumors of China and Bitcoin’s […]

Xem chi tiết: Amid Stern Warnings from China Crypto Firms Huobi and Okex Halt a Few Services

Bitcoin Mining Operations Btc.top and Hashcow Cease Offering Services in China

Following some stern warnings from a few major trade associations and regulators in China, two prominent exchanges, Huobi and Okex, have stopped offering services to Chinese residents. After the two exchanges halted specific services to residents of mainland China, two bitcoin mining operations have also abandoned the country on Monday. Btc.top and Hashcow have suspended […]

Xem chi tiết: Bitcoin Mining Operations Btc.top and Hashcow Cease Offering Services in China

Data Shows Bitcoin Addresses in Accumulation Captures Fresh New Highs

After bitcoin prices dipped to a low of $30,066 per unit last week, lots of people have been focused on the panic sellers. Meanwhile, when bitcoin prices plunged, the number of bitcoin addresses in accumulation tapped an all-time high at 545,115 addresses. Number of Bitcoin Accumulation Addresses Hit New Highs Bitcoin (BTC) prices slid from […]

Xem chi tiết: Data Shows Bitcoin Addresses in Accumulation Captures Fresh New Highs

Bitcoin Mining Operations Btc.top and Hashcow Cease Offering Services in China

Following some stern warnings from a few major trade associations and regulators in China, two prominent exchanges, Huobi and Okex, have stopped offering services to Chinese residents. After the two exchanges halted specific services to residents of mainland China, two bitcoin mining operations have also abandoned the country on Monday. Btc.top and Hashcow have suspended […]

Xem chi tiết: Bitcoin Mining Operations Btc.top and Hashcow Cease Offering Services in China

Amid Stern Warnings from China Crypto Firms Huobi and Okex Halt a Few Services

On Friday, the cryptocurrency community discussed a report stemming from China’s 51st meeting of the Central Financial and Economic Affairs Commission that reiterated warnings about bitcoin mining. The following Sunday, reports disclosed the cryptocurrency operation Huobi has suspended its cloud-mining operations and other crypto services to customers in mainland China. Rumors of China and Bitcoin’s […]

Xem chi tiết: Amid Stern Warnings from China Crypto Firms Huobi and Okex Halt a Few Services

Federal Reserve Bank Presidents: Cryptocurrency Sell-off Not a Systematic Concern, Does Not Affect Fed Policy

Cryptocurrency sell-off is not a systematic concern for the Fed and does not affect Fed’s policies, two Federal Reserve Bank presidents said Wednesday. “We are all quite aware that crypto can be very volatile,†said the president of the Federal Reserve Bank of St. Louis. Crypto Sell-off Does Not Change Fed Policy Two Federal Reserve […]

Xem chi tiết: Federal Reserve Bank Presidents: Cryptocurrency Sell-off Not a Systematic Concern, Does Not Affect Fed Policy

Federal Reserve Bank Presidents: Cryptocurrency Sell-off Not a Systematic Concern, Does Not Affect Fed Policy

Cryptocurrency sell-off is not a systematic concern for the Fed and does not affect Fed’s policies, two Federal Reserve Bank presidents said Wednesday. “We are all quite aware that crypto can be very volatile,†said the president of the Federal Reserve Bank of St. Louis. Crypto Sell-off Does Not Change Fed Policy Two Federal Reserve […]

Xem chi tiết: Federal Reserve Bank Presidents: Cryptocurrency Sell-off Not a Systematic Concern, Does Not Affect Fed Policy

Goldman Sachs Launches Bitcoin Derivatives Trading as ‘Institutional Demand Continues to Grow Significantly’

Investment bank Goldman Sachs has reportedly begun offering a bitcoin investment product to clients. The firm has opened up trading with non-deliverable forwards, a bitcoin derivatives product. To hedge against the cryptocurrency’s volatility, Goldman Sachs will trade bitcoin futures on CME Group. Goldman Sachs Begins Offering Bitcoin Product to Clients Investment bank Goldman Sachs “has […]

Xem chi tiết: Goldman Sachs Launches Bitcoin Derivatives Trading as ‘Institutional Demand Continues to Grow Significantly’

Crypto Analytics Firm Coin Metrics Raises $15 Million, Goldman Sachs Leads Funding Round

Fidelity Investments Launches Crypto Analytics Platform Sherlock for Institutional Investors

BTC Futures Open Interest Hits $23B, Binance Captures Lion’s Share, Signals Say 43% Chance of $64K Bitcoin by Month’s End

Over $6B in Bitcoin Options Set to Expire Today, April Contracts Show Bets for $80K per BTC

After BTC Slid by 14%, Onchain Analyst Says a US Based Institution Is Currently Buying the Dip

BTC’s ‘Hands of Steel’- 37% of Bitcoin’s Supply Hasn’t Moved Since 2017, 55% Sat Idle After 2018’s Bottom

Bitcoin Has No Intrinsic Value, Asset Is Too Volatile, Says Bank of Korea Governor

Survey Finds Many Finance Managers Are Not Planning to Hold BTC— Volatility Cited as Key Concern