Bitcoin Volatility Hit An All-Time Low As Hash Rate Tanks

Key Points:

• The Bitcoin network hash rate is likewise rapidly falling to 229 TH/s (terahashes per second).
• The drop was ascribed to miners in Texas shutting down their operations owing to harsh weather conditions and increased demand for electricity infrastructure.

According to on-chain data, Bitcoin market volatility is at an all-time low. Crypto researchers have been tracking historical Bitcoin volatility levels, and they have bottomed out.

The last time volatility reached this level was in late 2018. This was a bear market identical to the present one, with crypto values decreasing for the whole year.

Following the last flush out on December 15, when BTC plummeted to $3,200, volatility spiked again towards the close of that year.

Other analysts verified the new low in Bitcoin volatility. For the previous six weeks, the asset has traded between $15,700 and a little more than $18,000. With much of the globe on vacation, market activity is unlikely to start up until next month.

It was noted that prior times of low volatility had been followed by a rise. Every time volatility fell below value ‘1,’ it was followed by a bullish rally with one exception – October 2018.

Bitcoin’s volatility is not the only indicator that has plummeted. The network hash rate is likewise rapidly falling, however, the two are not necessarily related.

On December 25, hash rates dropped to 229 TH/s (terahashes per second), according to Blockchain.com. This marks a 16% drop from the all-time high reached in early November.

The current drop was ascribed to miners in Texas shutting down their operations owing to harsh weather conditions and increased demand for electricity infrastructure. Concerns have been raised about another distressed miner sell-off, although it has yet to occur.

Bitcoin prices have remained relatively stable throughout the weekend, approaching around $16,800 for the Christmas holidays. On Monday, BTC rose to a five-day high of $16,895. Since the asset went below $17,000 on December 16, there has been no meaningful movement.

The current crypto market value is $846 billion, which is quite near to the top levels of the 2017 bull market. With a 72.5% fall, most observers feel that markets are nearing the bottom of this bad cycle.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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