Bloomberg Quicktake: Now published this video item, entitled “Bitcoin Volatility Puts Weekend Traders on Stomach-Churning Ride” – below is their description.
Bitcoin’s extreme volatility carried into the weekend as the world’s largest cryptocurrency continued to whipsaw investors with double-digit percentage moves.
Bitcoin traded at $33,052, down 13%, as of 3:45 p.m. in New York, holding below its 200-day moving average; other cryptocurrencies, including Ethereum and Dogecoin, also slumped, according to CoinGecko.com. Earlier in the weekend, Bitcoin had climbed more than 8% to move back above $38,000 following a tweet from Elon Musk.
A measure of implied volatility on Bitcoin comparable to the U.S. equity market’s VIX indicator sits above 130, higher than the stock version has ever gotten in 30 years. Thirty-day historical volatility in the coin is about 100, some seven times more than the S&P 500 and surpassing the comparable measure in lumber futures, and an ETF designed to pay twice the daily return in crude oil.
Investors in Bitcoin are experiencing one of its rockiest weeks ever after a string of negative headlines, with prices swinging as much as 30% in each direction Wednesday alone, when it fell as low as $30,016, the least since January. Even with the gyrations, Bitcoin is still up more than 250% in the past year.Bloomberg Quicktake: Now YouTube Channel
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