Introduction After having studied the price action (PA) and on-chain data of Bitcoin (BTC) pretty closely for the past 18 months, I think I now have a pretty good understanding of the reason BTC is so volatile and often seemingly so unexpectedly. The purpose of this article is not to identify the catalysts of any particular price spike or swoon but instead to explain how the heterogeneity of BTC’s market participants is what causes such volatility when such catalysts emerge. For instance, it seems pretty clear that the volatility experienced this past Wednesday (November 10) had two catalysts. The first was the
Bitcoin Volatility Explained
Bitcoin Volatility Explained
Bitcoin Volatility Explained
Introduction After having studied the price action (PA) and on-chain data of Bitcoin (BTC) pretty closely for the past 18 months, I think I now have a pretty good understanding of the reason BTC is so volatile and often seemingly so unexpectedly. The purpose of this article is not to identify the catalysts of any particular price spike or swoon but instead to explain how the heterogeneity of BTC’s market participants is what causes such volatility when such catalysts emerge. For instance, it seems pretty clear that the volatility experienced this past Wednesday (November 10) had two catalysts. The first was the