Bitcoin’s volatility level has dropped by 6 points to 3.84%, a similar level to April last year, which marked the start of Bitcoin’s bull run to $12,000.

What Is Volatility?

Volatility is a measure of how the price of an asset varies over time and the risk of changes to an asset's value.

The Bitcoin markets can be exceptionally volatile, especially through the eyes of someone used to the more established financial markets. When the traditional markets move in a drastic fashion, they may move by 10% by a week. For Bitcoin it is not uncommon for 20% moves on individual days. And while that may sound like a lot, Exchange Bitcoin to Western Union the fact of the matter is actually that Bitcoin's volatility has steadily decreased over its 10 year lifespan.

Bitcoin's value has always been volatile, but has been decreasing over time. In the period between October of 2017 and January 2018, the volatility of the price of Bitcoin reached nearly 8%. This is more than twice the volatility of Bitcoin in the 30-day period ending January 15, 2020.

Why Does Volatility Occur?

One of the main reasons the markets are so volatile is due to the very limited economic BTC Bitcoin To Paypal Exchange size of them. At the time of writing, the total market capitalization of Bitcoin sits around $138 billion. In comparison, the combined market value of Apple is well above one trillion dollars. In other words, the value of this asset class is miniscule even compared with individual equities such as Apple.