Cryptocurrency Q&A
How is bitcoin volatility measured?
How is bitcoin volatility measured?
Michele
Thu Jul 18 2024
|
7 answers
1716
Could you elaborate on the methods used to quantify the volatility of Bitcoin? Understanding the fluctuation of its value is crucial for investors and market analysts. Is it primarily gauged through technical indicators like Bollinger Bands or the standard deviation of price changes? Do fundamental factors like supply and demand also come into play? How does the volatility compare to other major cryptocurrencies? Any insights into how investors can utilize volatility data to make informed decisions would be immensely valuable.
7 answers
Maria
Fri Jul 19 2024
In the case of Bitcoin, this is calculated by summing the squared differences between the opening price and each subsequent price point (N) for a day, then dividing by the number of price points (N).
Was this helpful?
387
22
ZenBalanced
Fri Jul 19 2024
Cryptocurrency volatility is a complex metric that varies depending on the digital asset being analyzed.
Was this helpful?
196
86
emma_lewis_pilot
Fri Jul 19 2024
The volatility of Bitcoin, for instance, is determined by the extent of its price fluctuations compared to its average price within a given period.
Was this helpful?
94
66
CryptoProphet
Fri Jul 19 2024
The square root of this sum is taken to obtain the standard deviation, which represents Bitcoin's daily volatility.
Was this helpful?
160
69
SumoPower
Fri Jul 19 2024
It's important to note that Bitcoin's volatility can vary significantly, depending on market conditions and external factors.
Was this helpful?
328
86
Load 5 more related questions
