Bitcoin experienced minimal price movement in the 15 days leading up to a significant drop on June 7, reaching levels of volatility not seen in Bitcoin’s history. Swan Bitcoin’s chief investment officer, Rapha Zagury, noted that the period between May 24 and June 7 was in the “bottom 6% of occurrences” for volatility.
Zagury highlighted the stagnant nature of Bitcoin’s price during this period, with the cryptocurrency trading within a 7% range, fluctuating between $66,936 and $71,656. Following this period, Bitcoin’s price sharply declined by 3.33% to $69,264, spurred by the release of a stronger than expected United States Employment Situation Summary Report, suggesting that inflation rates might not be cut by the United States Federal Reserve on June 11.
Despite the recent dip in price, Bitcoin is currently trading at $69,246. Zagury pointed out that historically, periods of low volatility or lower have led to significant price movements in the following 30 days, with an average return of 20.95% and a maximum return of 218.40%. Looking further out to 365 days, the average return jumps to 820.82%, showcasing the potential for significant gains.
Zagury emphasized that past performance is not indicative of future results but believes there is value in learning from historical patterns. This article does not offer investment advice, and readers are encouraged to conduct their own research before making any financial decisions.