The volatility of Bitcoin and the bubble effect

Greetings colleagues back with more content from the world of economics and finance, for this occasion I thought it appropriate to share my analysis at the level of economics and finance, as in recent days the cryptomoney Bitcoin led the markets but with ups and downs creating many uncertainties, as for economics is evident two economic phenomena within the behavior of this asset digita within the block chain the first is its volatility and the second the bubble effect.

For the date of December 2020 and so far in January 2021, the behavior of Bitcoin has been very noticeable in the block chain, where it has reached maximum prices for the moment $ 40,000 to reach today, Saturday January 16, 2021, at a price of $ 37573, information consulted in the app of Coingecko, within the graphical analysis is very noticeable movement in volume of this digital asset, This phenomenon shows us how it is a way to measure the standard deviation, but my friend, it is a function of the movement or behavior of the price levels of a financial asset in a given period, because it has become unstable every day giving an effect of volatility every week, which is evident in its price.

With the reflection of the male price levels that is manifested in the Bitcoin, it creates uncertainty because the same volatility makes possible this behavior of the crypto-currency or cryptomone, the analysis of the graphs is a technical analysis where wide ranges of prices and low volumes are observed, it is evidenced in the market by the uncertainty of the price makes possible few transactions of purchase orders, these orders of sale when it reflects that the market is rising.

It does not end with the volatility, but also makes possible another economic effect or phenomenon such as the bubble effect, thanks to the fact that all digital assets have historical price volatility, apart from the fact that the volatility in the financial markets, always translates as a measure of price risk, also enters the game of price speculation, the most unique thing reader friend is that it is a phenomenon that occurs in the markets of ctiptomonedas, which the bubble effect this is own because it is characterized by an abnormal rise, which in turn is uncontrolled levels of the price of a digital asset, currently living with the Bitcóin a speculative process, inducing investors to buy in order to sell at a higher price, summarizing in the game of speculation where it has a maximum price and then a historical minimum.