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Bitcoin's Volatility Extreme, Feels Like 2013 All Over Again


Bitcoin (BTC) price is experiencing a topsy-turvy ride right now with extreme bitcoin volatility resulting in a difference of $1350 in the high and low record of yesterday. Bitcoin was on the brink of $7,000 yesterday in the early morning, but when approaching its end, it was lingering around the massive low of $5,565. It prompted a release from a top derivative and crypto trader, TraderXO who stated :


TraderXO@TraderX0X0

Wild af out there... wew - ill just enjoy watching the charts for now..

Been a solid day not going to over trade

135
3:46 AM - Mar 21, 2020
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On Coinbase platform, the hourly chart was incredibly heightened, the price dwindle then went up in consecutive hours by more than $500.

The volatility index is off the rails right now and  keeps fluctuating at a blistering pace, way more than what we've witnessed in the last six years or so. Even the 2017 bubble market didn't show these signs, and the volatility rate-limited itself to 7.7%. Since March, 10% have been a constant, and currently, it's at 10%.

The bitcoin volatility right now feels like a throwback to the early days of the yellow coin. In 2013, the bitcoin volatility rate was in the range of 12-15%.  Equity market's VIX interest has gone past ATH of $80.

Not All OK at BitMEX and OKEx

BitMEX experienced massive drops in the open interest (OI) rate, which at the time of writing, is just $367 million. It soared to 1.2 billion when the bull market was observed for consecutive days on the platform. However, BitMEX not alone in these turbulent times, as OKEx and OI are undergoing substantial drops too.

The lacklustre performance of these exchanges, coupled with a $100 billion market drop associated with bitcoin have facilitated further up and down in bitcoin's volatility. The whale size payments are beckoning and they might l bring another twist in the story of bitcoin halving.

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