Bitcoin experienced a period of extreme stability in the 15 days leading up to a sudden drop on June 7, approaching historic lows in terms of volatility. Swan Bitcoin’s chief investment officer, Rapha Zagury, noted that between May 24 and June 7, Bitcoin’s volatility was among the “bottom 6% of occurrences.”
Zagury pointed out that during this time, Bitcoin was essentially “stuck in a range,” with its price fluctuating within a narrow 7% range, moving between $66,936 and $71,656. However, following this period of stability, Bitcoin’s price took a sharp 3.33% decline to $69,264, according to CoinMarketCap data.
This sudden drop was attributed to the United States Employment Situation Summary Report revealing stronger job growth than expected, leading to speculation that the United States Federal Reserve may not cut inflation rates on June 11. This metric is closely monitored by analysts for predicting Bitcoin price movements.
Despite this drop, Bitcoin is currently trading at $69,246. Zagury highlighted that previous periods of similarly low volatility or lower have resulted in significant returns for Bitcoin. Over the next 30 days, the average return was 20.95%, with a minimum decline of 32.06% and a maximum increase of 218.40%. Looking at a 365-day period following low-volatility periods, the average return was a remarkable 820.82%.
Zagury emphasized that while past performance is not indicative of future results, there is value in learning from historical trends. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.