The price of the leading cryptocurrency hit a six-day high yesterday when it reached nearly $6,900. Later the price dropped to $6,00 region in just a few hours. Bitcoin is experiencing swings at the moment as the volatility rate reaches a six-year high.
Bitcoin experiences a high volatility rate.
The leading cryptocurrency has not experienced such swings since 2017. Even during the 2017 bubble market, the volatility of bitcoin was around 7.7%. Currently, the volatility is at 10.3%. It has been above 10% since March 16th. The volatility in the price of bitcoin in 2013 went as high as 12-15%. In the time of the global pandemic, when global financial markets are crashing, bitcoin has failed to prove its status of safe haven.Prominent derivatives and crypto trader, TraderXO, also tweeted about the volatility.
The price of bitcoin likely to fall below $5,000 in the short-term.
At the time of writing, bitcoin is changing hands at $6,086, over 8% down in the last 24-hours. The short term prediction for the price of bitcoin is quite bearish. It is expected that bitcoin might fall below the $5,000 level in the near future. Financial markets all over the world are crashing because of the ongoing global pandemic. Bitcoin is also likely to follow the trend as so far it has been reacting in accordance with financial markets all over the world.