Ethereum and bitcoin volatility surge could be bullish signal

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Bitcoin
Ethereum and bitcoin volatility surge could be bullish signal

Per Glassnode’s recent analysis, bitcoin and ethereum have realized volatility well below normal levels. This means a possible bull market formation as we advance into 2023.

Signals of hope for the crypto ecosystem

According to the leading financial metrics, data, chat, on-chain tracker Glassnode, the bitcoin and ethereum markets commence the new year while crumbling in shallow positions.

The realized volatility for the two fundamental assets has dropped to record-low levels, which traditionally signals the start of exponential moves in either position. 

For over three weeks, Bitcoin maintained a price range of just $557, a highly uncommon feat. The maximum price ($16.9k) was only 3.4%, well above the spectrum low of $16.4k.

All markets are customarily calm at the end of the year, and the digital asset market assets were no different.

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Bitcoin Price 1-Week. Source: Glassnode

Despite the holiday break’s quiet market, BTC realized volatility in December 2022 to a historical low of 24.6%, which, per average trades, is rare.

Nevertheless, all of the previous instances were followed by future environments with significantly greater volatility; all but one, November 2018, traded sharply higher, which had -50% drawdown.

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Bitcoin 1-Month Realized Volatility. Source: Glassnode

On the other hand, ETH’s historically quiet period seems much lesser than BTC’s. Charts and data suggest that the monthly realized volatility has collapsed by 39.8%, similar to the low market volatility previously experienced from 2018 to 2019 and a rise from 2020 to 2021.

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Ethereum Monthly Realized Volatility. Source: Glassnode

Ethereum and bitcoin 24hr transaction increases

Crypto enthusiasts have been included in the analysis as documenting bitcoin declared that the blockchain network has processed $41,461,179,862 worth of transactions during the weekend as banks and the stock market were closed.

According to ycharts, bitcoin transactions are at 228488.0, down from 246679.0 in the last 24hrs, which is also a rise from 223920.0 a year ago. It is considered a change of -7.37% compared to 2.04% in 2022.

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Bitcoin Transactions Per Day. Source:: Ychart.com

The current figure of ethereum transaction data in the last 24hrs is 1.184 million, up from 957607.0 yesterday and 1.184 million in 2022. The transformation from yesterday is 23.65%, and the adjustment from a year ago is 0.02%.

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Ethereum Transactions Per Day. Source: Ychart.com

Crypto trends were distracted by the befallen crypto exchange FTX, owned by Sam Bankman Fried, who allegedly used users’ funds as collateral. This was discovered as Alameda, the sister company, had heavily invested in the crypto exchange.

Nonetheless, all have been good as the market commenced to show the potential for a rally.

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Adam Robertson

Adam is outgoing young lad who likes adventures and discovering new things. Despite his boring life, He loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.