[2017-08-15] Searching for a Pattern in the History of Bitcoin Price Volatility

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Quote from: nickbelski on August 16, 2017, 01:45:00 AM

Author from Forbes sees the similarities of this situation with BTC and calls to be careful with crypto investment.

I have been hearing about tulip bulbs ever since the Bitcoin price broke through the $100 level for the first time. In one way I can understand these warnings, but at some point one must realize that this isn't 2011/2012/2013 anymore - everything related to crypto in general has become a whole lot more serious. There are even certain countries that have legalized Bitcoin, if that isn't reason enough to take Bitcoin seriously, I don't know what is. I don't think the tulip bulb mania comparison will ever come to a stop - some entities just can't admit that Bitcoin is something that serves a real purpose. It's either a lack of understanding, or they simply don't want to admit (for whatever reason) that Bitcoin is here to stay.

nickbelski

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Searching for a Pattern in the History of Bitcoin Price Volatility

Recently i read the article about tulip bulbs mania in Holland in 1630s. People treated to them as with a stored value. Like with a Gold or Silver. But time passes and more tulip bulbs were created and the market had fallen. Author from Forbes sees the similarities of this situation with BTC and calls to be careful with crypto investment.

https://www.forbes.com/sites/adamhartung/2017/08/15/a-bitcoin-is-worth-4000-why-you-probably-should-not-own-one/#234311bf3b08

btcton

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Quote from: Casabrandy on August 15, 2017, 09:40:32 PM

There is no such pattern on bitcoin volatility. There are millions of people with different way of thinking and decision making in buying/selling of bitcoin that affects price. So it is impossible to create such a pattern out of that thing. But tracking of price history is a good thing to have an idea on trading.

This. Not only that but also as Bitcoin gains popularity, more people from different places and with different backgrounds come and make their play/investment. It also plays around events that make the world news such as Donald Trump getting elected to the presidency of the United States or North Korea's threats to American territories. Thinking that Bitcoin's price follows any sort of pattern would simply be incorrect, as would be the case if this were said about any other investment, stock market included. Prices are guided by external factors not necessarily related to the asset itself.

Casabrandy

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There is no such pattern on bitcoin volatility. There are millions of people with different way of thinking and decision making in buying/selling of bitcoin that affects price. So it is impossible to create such a pattern out of that thing. But tracking of price history is a good thing to have an idea on trading.

iram1011

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According to him, one of the observations shows that the huge rises in Bitcoin price often coincide with stronger demand on stocks. For example, the Dow Jones Industrial Average added 1.56% during the recent month, and the Nasdaq rose by 0.37%. This shows the sentiment toward more risky assets.

This relation is loosely based. Stocks and Bitcoin hardly have any correlation. Many of the stock investors don't even know about Bitcoin existence. The risk taking attitude depends upon person and not the market.

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another observation shows that whenever there is a risk of capital control in a country, the demand for cryptocurrencies grows faster than ever. Like in Cyprus in spring 2013, the unprecedented bailout of Cyprus' banks introduced in the country, which reduced the amount of money which bank clients could withdraw from their accounts, resulted in a massive surge in the Bitcoin price. It rose by almost 700%.

I completely agree to his one. The need for having the financial stability in the times of financial crisis makes people find some alternatives and Bitcoin fits the best at that. Whenever banks or countries try to excessively control the cash flow, Bitcoin demand increases.

Vladdirescu87

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This week, Bitcoin’s price reached a new amazing record. On Monday, August 14, the Bitcoin price rose by 4.35% and moved to a level above $4,400.

Actually, now we can say that within the past month Bitcoin almost doubled in its value despite the huge fuss around the Bitcoin scaling issue discussions, SegWit and Hard fork. This allows investors to leave behind all their fears that a hard fork should definitely cause massive falls in the cryptocurrency market.

Read the full article: https://coinidol.com/pattern-in-the-history-of-bitcoin-price-volatility/

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