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Bitcoin volatility goes off scale after $ 40,000 breakout

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What’s Happening With Bitcoin?

Bitcoin volatility goes off scale after $ 40,000 breakout
CONTENT

  • Bitcoin sets another all-time high above $ 40,000

  • Cryptocurrency Volatility Rises Sharply

  • Experts note the risks of large-scale correction

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Volatility returned to the cryptocurrency market: within an hour, bitcoin soared to new historical highs above $ 40,400 and fell to $ 36,000

Bitcoin continues to hit all-time highs, but market volatility is rising along with prices. Profit taking, which began after the growth of the first cryptocurrency above the psychologically significant level of $ 40,000, in a matter of minutes brought BTC down to $ 36,000. The intraday range of Bitcoin movement exceeded $ 4,000.

Bitcoin volatility goes off scale after $ 40,000 breakout

Bitcoin Chart Source TradingView

Among the “main suspects” are speculators, algorithmic bots, quantum funds, as well as whales and institutional investors. The total cryptocurrency market capitalization exceeded $ 1 trillion, and the average daily trading volume reached $ 181 billion. Bitcoin dominance index settles below 70%.

Correction is not far off

The number of new Bitcoin addresses approached all-time highs reached at the end of 2017, while the number of active addresses reached a record high at 1.29 million.The previous record was reached in December 2017 at 1.19 million.

The number of active bitcoin addresses, source Intotheblock

According to experts of the analytical company Flipside Crypto, this may signal an upcoming correction. 95% of all bitcoins are stored on 2% of addresses, so if the whales are preparing to sell, then a couple of large trades will be enough to trigger a large-scale correction.

Volatility is back

Bitcoin volatility goes off scale after $ 40,000 breakout

“Bitcoin continues to outpace all forecasts,” says Anthony Trenchev, co-founder and managing partner of the Nexo cryptocurrency platform. “All other assets follow him, history repeats itself from year to year over the past ten years”.

The injection of liquidity into the global financial system provokes a rise in inflation expectations and draws attention to Bitcoin as a hedging tool against inflation. Cryptocurrency proponents compare it to gold, but critics continue to insist that Bitcoin is a bubble that will burst sooner or later..

According to Jeffrey Morphy, head of Canadian mining company Bitfarms Ltd, when people start noticing that their liquid assets, in particular cash, are depreciating, they will start looking for alternatives..

The second largest cryptocurrency, ETH, has consolidated above $ 1,200. Over the week, the coin has risen in price by more than 66%. XRP has also won back almost all of the losses suffered since the announcement of the SEC’s lawsuit against Ripple. XRP is trading at $ 0.32 at the time of writing. During the day, the coin has risen in price by more than 30%, and since the beginning of the year – by 50%.

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