The past three months of the year have been a rollercoaster ride across the world as the COVID-19 pandemic set the global assets and economies at a standstill or regressing pattern. Assets across the board including stocks, gold and Bitcoin (BTC) have suffered during this time setting record volatility levels across the month of March.
Over the past 30-days, the S&P 500 volatility reached an all-time high in the average daily volatility recording 4.82%. While remaining relatively stable during the capitulation in asset markets, gold still set its highest 30-day average volatility witnessing an average of 2.36% – highest since September 2011.
As it has become customary, Bitcoin has historically seen high volatility and March was no different as the top crypto set its highest volatility since the end of 2013.
BTC 30-day volatility hits five year high
Bitcoin (BTC) volatility set a five year high on its 30-day average volatility as the asset faced one of its most volatile months as the fears of COVID-19 grew out of proportion. According to data aggregator, Buy Bitcoin Worldwide, the 30-day volatility on BTC/USD averaged 10.86% at the end of March, the highest it’s been since December 2013, when it reached 12.56%.
In the middle of the confusion and scare of government lockdowns and collapsing economies, the price of BTC collapsed from $8,000 region to below $3,800 in a matter of minutes on Mar. 12 during the Black Thursday crash. Shortly after losing over 50% of its value in the process, BTC grew to $6,000 setting one of the most volatile days in BTC’s history yet.
Volatility set to continue deep into Q2
Bitcoin (BTC) bulls are however hopeful for a possible recovery of the coin in this quarter given Q2 has historically been the best performing quarter of the crypto. Notwithstanding, the upcoming halving in May will halve the block rewards from 12.5 BTC to 6.25 BTC reducing the supply rate.
The #Bitcoin block reward halving occurs next month. The specific date is 18 May.
This is one of the most talked about events within the #crypto community. Why? Because it only occurs once every 4 years.
Be prepared for increased volatility as the halving date approaches. pic.twitter.com/FEx1kR4NI8
— Digitex Futures (@DigitexFutures) April 3, 2020
With Coronavirus pandemic also affecting Bitcoin mining operations, the volatility is set to spike further as we head towards the halving.
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.