Kraken publishes its market analysis for the month of June. According to the analysis, Bitcoin volatility is reaching new highs again. At the same time, a continuation of the price trend that has existed since April of this year can be observed.
Calculated over the year, Bitcoin’s volatility is 73 percent. This means that the value fluctuation of crypto currency no. 1 is higher than it has been since November 2018. This is probably primarily attributable to the high trading volume of 42.3 billion US dollars, as a result of which prices have also made some exorbitant leaps. Also BTC cloud mining is very profitable at the moment, read more at www.bitrebels.com.
An example of this is the pump of the Bitcoin exchange rate to 13,800 US dollars on 26 June – after all, a price increase of 18 percent within one day. The fact that such Bull Runs are not sustainable, then showed the empiricism. Finally Bitcoin investors had to accept losses of nearly 2,000 US Dollar in only few minutes in the consequence.
Correlation to traditional assets
Compared to May of this year, the correlation to other assets such as the equity market was very positive. It 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 still -85 percent in May. In June, however, this figure almost reversed. As Kraken reports, it was about +58 percent for the following month.
A more or less positive correlation also emerged for all the other asset classes examined in June of this year. If you would like to find out more about the correlation between the prices of traditional investments and Bitcoin & Co.
US policy puts BTC on the agenda
One thing is clear: despite the fact that some US policymakers have been quite frank with Bitcoin, recent parliamentary sessions have caused a lot of media turmoil. Hardly any media missed to report on David Marcus’ appearance before the US Parliament’s Finance Committee, for example. It is not absurd that the positive image that Bitcoin’s debate leaves behind will also have possible effects on the share price. This is similar to Kraken.
Also the US central bank politics regards the Bitcoin stock exchange as a further potential price driver. Should FED Chairman Jerome Powell Trump’s demand for a renewed easing of monetary policy be met, this could have an impact on rising Bitcoin prices. After all, investors in a low-interest environment are more willing to invest in risky assets such as crypto currencies.