Volatility is Real
It was big day of volatility for Bitcoin. This is to be expected, especially in the bull market (as we mentioned in our post on Feb 19, 2021). Many find bitcoin hard to hodl. The volatility up causes people to sell when they want to take fiat profit. Volatility down causes people to sell because they don’t want to lose anymore fiat.
Today’s volatility - Monday, Feb 22
Within 12 hours BTC travelled from $57K to $49K, a 14% drop. Then within 10 hours BTC travelled from $49K to 54K, an 8% increase from the daily bottom.
Bull Run Market Volatility 2016-2017
In the 2016-2017 bull run bitcoin had a six down side corrections ranging from -29% to -38%. So far in 2021 we’ve had one -31% correction. Today we had a -14% correction; so we’ll see if it goes lower.
It’s difficult to have 💎 🤲 .
Top Tweets of the Day + Last Weekend
Bitcoin gained nearly half of it’s value in 1 month.
Hopefully the trend continues.
Bitcoin is consolidating between the $45K-$58K.
A bitcoiner is now the Chief Innovation Officer at the Fed
A note of appreciation
If there’s a stimulus it will be interesting to see if people put it in bitcoin.
Amazing to see how Visa treats bitcoin now compared to the past
Payment companies are incentivizing customer to sign up for credit cards, lending, and payment products (PayPal, CashApp, Robinhood, and soon to be Venmo).
Chart of the Day
The bitcoin price is following Stock-to-Flow closely. Below is the updated Stock-to-Flow (S2F) chart.
We still aren’t at green yet. The open question is whether we will have a double top like in the 2013-2014 cycle or a single top like in 2016-2017 cycle. Or, perhaps it will look different. Here is the Intro to Key Charts for more info.
Hope you all have a wonderful evening,
Bitcoin Daily