The past couple of weeks have been tumultuous for Bitcoin. The price of BTC collapsed when people didn’t expect it to and it went sideways when people expected it go up. At press time, Bitcoin was moving sideways, consolidating, waiting for another volatility-driven move. Direction? Nobody knows. Trading at $9,235 with a market cap of $167 billion, Bitcoin is due for another flashy move in the near future.
The recent move by Bitcoin is interesting because of its magnitude. Since the price closed above $10,000 on October 26, 2019, it made the move, the third-highest 1-day return for Bitcoin at 38%. The first one was 54% on 11/6/10, followed by 48% on 5/10/11.
Alex Krüger, a well-known crypto enthusiast and an economist pointed out the largest daily move performed by Bitcoin. The largest of them all was the one witnessed on October 09, 2010, where BTC surged by ~1,100%. Following this was the 165% surge on April 13, 2013, and a 139% surge, on June 13, 2011.
Largest two-day upmoves in $BTC's history:
– oct/9/2010: +1,100%
– apr/13/2013: +165%
– jun/13/2011: +139%Largest two-day downmoves in $BTC's history:
– apr/12/2013: -75%
– sep/15/2010: -65%
– jun/12/2011: -59%(using High vs Low in any two day period)
— Alex Krüger (@krugermacro) November 3, 2019
Unlike upswings, downturns haven’t been of such large magnitudes as the largest down move was 75% on April 12, 2013. The other downturns include 65% on September 15, 2010, and 59% on June 12, 2011.
Bitcoin network has been growing without a pause as the number of UTXO per month has increased from 10,000 to about a million. Moreover, the rise in BTC per month [which refers to the amount of on-chain BTC transferred per month] has also seen an increase from a mere million to about 50 million. The most interesting increase is perhaps the rise in USD entering the network per month, which has risen from a whopping 10 million to 1 trillion.
Source: PlanB
As the halving approaches, BTC’s value is generally said to increase due to the resounding fact that the supply will be reduced by half, which will cause scarcity and hence the prices to go up.
