A study on bitcoin's volatility and extreme tails by ARK's Research Trading Analyst and Associate Portfolio Manager for Digital Assets @dpuellARK 👇
A study on #bitcoin's volatility and extreme tails. Start of thread...
1/ Key takeaways:
1. As seen below, and somewhat obvious today, bitcoin's volatility has decreased.
2. Bitcoin has consolidated 84% of the time, above the rule-of-thumb 70% given in financial literature.
3. Bitcoin days of extreme volatility seem to have diminished over time.
4. Based solely on recorded volatility, there have been two extremely catastrophic days in the history of bitcoin. Which days? The answer is at the end of this thread.
The first chart below provides every single trading day in context on how volatile it is relative to 1 to 4 standard deviations (a.k.a. sigma units).
Let's dive in...
125.47K
111
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.