Bitcoin’s (BTCData from TradingView & Glassnode show that volatility in the cryptocurrency market is nearing cycle highs, as concerns about an impending trade war and US cryptocurrency stocks reach a crescendo.
Data shows that the conflicting signals of bullishness and bearishness, which reached their peak after US President Donald Trump’s inauguration in January 2017, have caused crypto prices to go on an erratic ride.
“As demonstrated by the intense whipsaw in price action, this has led to very turbulent conditions over the last two weeks against a backdrop of an uncertain political environment,” Glassnode noted in March’s research report.
Bitcoin’s realized average volatility is approaching cycle highs. Source: Glassnode
Bitcoin’s realized volatility — one measure of daily price variations — has “recorded some of the highest volatility values of the cycle so far, exceeding 80%” One- and Two-Week Timeframes according Glassnode
The digital currency’s average true volatility (ATR), a measure of its volatility, reached cyclical highs in excess of 4,900. This is up from around 3,900 at the end February. according TradingView data is available.
BTC has dropped nearly 30% since December, when the price of BTC was at its highest point ever. Altcoins EtherETHSolana (SOLGlassnode reported that the two stocks are each down over 50% from highs.
Bitcoin ATR’s versus the price. TradingView
Related: Bitcoin no longer ‘safe haven’ as $82K BTC price dive leaves gold on top
Tariff chaos
The United States largest trading partners, Canada and Mexico were hit with 25% tariffs on March 4 by President Trump.
The traders were swayed by the news, which was bearish. They had turned more optimistic since Trump’s election. tipped plans on March 2 Create a US Crypto Reserve that holds tokens from BTC, ETH and XRP.XRPCardanoADA).
Bitcoin is a response. sunk to around $82,000 Google Finance’s data showed that after reaching a peak of about $93,000 around March 3, the price has dropped. Altcoins, such as ETH, and SOL, fell by even greater amounts, according to data. They dropped around 12% or 20% respectively.
The drop in prices indicated that macro-factors may overpower positive industry developments. For example, the US Securities and Exchange Commission dismissed several lawsuits brought against crypto companies by US Securities and Exchange Commission (SEC) back in February.
On March 4, cryptocurrency derivatives traders suffered more than $1 billion in liquidations Spot prices are whipsawing.
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Source: cointelegraph.com
