Today I have read that Bitcoin volatility is at its lows. I tried to find some volatility indicators for Bitcoin and some were saying that we are on a low period but others were pointing that we are in an average period.
So I finally wasn't convinced about what the charts were saying.
However there is an interesting idea that was written by the same author (I can't remember the name) that I think could be true.
In periods of low volatility the exchanges are making less Bitcoin from fees. If they are making less Bitcoin from fees for a long period of time will result in less Bitcoin selling to take profits.
That means that if we are in low volatility period for a long time, it may happen that there is less "selling pressure" from the exchanges and therefore Bitcoin prices tend to rise.
It does not seem like bad reasoning at all, it can make sense if low volatility is present long enough. In addition, for cryptocurrencies low volatility is a blessing. The less volatile this assets become, the more interesting will become for the long awaited institutional money.
There is the counterpart that volatility makes the cryptocurrencies really interesting for traders and risky investors like us, the early adopters.
Regardless of whether Bitcoin is more or less volatile, what is clear is that time is on our side. Day after day, we are closer to the new highs and the long awaited Bull mMrket that has to take us into space.
Fill your bags now that you can.