Kraken publishes his market analysis for the month of June. Accordingly, the bitcoin volatility reaches new heights again. On the same train, a continuation of the price trend, which has existed since April of this year, can be observed.
For the year, Bitcoin’s volatility is 73 percent. Thus, the value fluctuation of cryptocurrency no. 1 is higher than since November 2018. This is likely to be primarily due to the high trading volume of 42.3 billion US dollars, as a result, the courses have made sometimes exorbitant leaps.
As an example, here is the pump of the Bitcoin rate to 13,800 US dollars from June 26 to name – after all, a rise in price of 18 percent within a day. The fact that such bull runs are not sustainable has then shown the empiricism. After all, bitcoin investors subsequently suffered losses of nearly $ 2,000 in just a few minutes.
Correlation to traditional assets
Compared to May of this year, there was a lot of correlation with other assets such as the stock market. It actually rose in a significantly positive direction. For example, the monthly correlation with the S & P 500, one of the most important stock indices in the world, was -85 percent in May. In June, however, this value almost turned around. Because as Kraken reports, he was about +58 percent for the following month.
All other asset classes analyzed also showed a more or less positive correlation in June of this year. If you would like to know more about the context of traditional asset investment courses compared to Bitcoin & Co., click here .
US policy brings BTC on the agenda
One thing is clear: despite the fact that some US policy-makers have been open to Bitcoin , the recent parliamentary sessions have caused a lot of hustle and bustle in the media. Hardly any medium missed reporting about David Marcus’s performance in front of the finance committee of the US Parliament. It is not out of the question that the positive image left by Bitcoin’s debate will have any potential impact on the course. That looks like octopuses.
The US Federal Reserve Bank also sees the Bitcoin exchange as another potential price driver. If FED Chairman Jerome Powell complies with Trump’s call for another loosening of monetary policy, this could impact rising bitcoin prices. After all, in a low interest rate environment, investors are more willing to invest in risky assets such as crypto currencies.
Why an increasing volatility makes Bitcoin as an asset class so attractive, we explain here.
image via Shutterstock