There’s more good news in the Bitcoin world as the coin’s value tops $50,000 for the first time, more than doubling its prior peak in 2017.
Some of that good news revolves around lower levels of volatility today, compared to the 2017 peak. While Bitcoin is still more volatile than gold, it seems composed of value chains with milder price swings than what accompanied the $20,000 peak around Christmas time of that year.
“According to Bloomberg, the current run is different from the 2017 bull rally that topped out below $20,000 in terms of volatility,” writes Osato Avan-Nomayo at Cointelegraph. “Indeed, data from Woobull Charts puts Bitcoin’s 60-day volatility at 14.25%, a significant decline from the over 32% recorded at the zenith of the 2017 bull run.”
However, Avan-Nomayo notes, J.P. Morgan analysts say that the Bitcoin rally is not sustainable unless volatility decreases further.
Despite this warning, good news around Bitcoin shows that 5% of CFOs want to invest in the coin on behalf of their employers, and that Bitcoin can now buy more gold than it could at any point previous.
Over at Coindesk, meanwhile, Omkar Godbole details how BTC has been able to beat the downward pressure from rising bond yields.
“Rising bond yields are a threat to prices of hedge assets, but bitcoin is soaring as gold falls.” Godbole writes. “Bitcoin’s dizzying bull run is showing no signs of slowing down despite an uptick in U.S. government bond yields. The cryptocurrency market leader set a new lifetime high of $51,348 early Wednesday, having penetrated the psychological level of $50,000 on Tuesday for the first time, according to CoinDesk 20 data. Prices have risen by 53% this month alone.”
Will BTC continue to rise? Many analysts think so: even before this rally, hodlers were anticipating much higher prices within several years. Now, as it’s shown that bigger price actions may be more of a short-term phenomenon, investors of all stripes are getting on board.
