Everyone is aware that Bitcoin is a highly volatile form of cryptocurrency, however, has anyone ever actually explored exactly why Bitcoin has such an incredibly volatile value? Well, people most certainly have but if you’re new to the investing world, you may be unsure. Price fluctuations really aren’t unusual, and people are more than inclined to become casual about it all.
At this point, people are generally accustomed to the insane volatility of Bitcoin, however, it doesn’t matter to many people as to why it is so volatile. Though, it really should. For a long, long time, Bitcoins volatile value has been common knowledge and at times, it has been historically high.
For example, and to put things into perspective, in only a three-month span from October of 2017 to January of 2018, the volatility of the price of Bitcoin reached roughly 8% which is extremely high. This is more than twice the volatility of bitcoin in the 30-day period ending January 15, 2020. While this may not sound like much at first, it is simply astronomical when put into perspective.
Let’s take a good look into the entire world of Bitcoin volatility and all of the things surrounding it.
Future value uncertainty
There is a whole lot of confusion and uncertainty when it comes to the future of Bitcoins value, especially with such volatility arising as of late. There have been plenty of times of uncertainty throughout Bitcoins lifespan which has previously cause a whole lot of stress, disaster, and confusion amongst all of the investors whether they are new to the scene or very experienced. As a result of all of the interesting factors, Bitcoins value is easily volatile and swings dramatically over time.
There are so many things that can impact the value and popularity of Bitcoin such as breaking news, celebrity decisions, and even websites such as News Spy. Price surges can be completely driven by small things such as a tweet (like Elon’s famous Dogecoin tweet) and even a simple news article. There really is no guessing as to what will happen when the news breaks out.
Dealing with volatility
Believe it or not, the investing world actually comes accompanied by many different emotions, even if you don’t intend for it too. Without noticing, the slightest bit of market volatility can cause stress, panic, anxiety, or a downfall in mental health even if it may not seem like a big deal at the time. It is completely normal to become stressed during these times because this is your most important asset (money) and it could be dwindling away.
For anyone, this is enough to cause alarms to ring and it will even stress people out beyond measure no matter how much experience they may have in the field of investing. Circumstances change, and while some volatility may not overly bother you, other volatility may, so just be aware and if you are ever feeling emotional, it is okay to reach out for help.