Kraken: BTC Could Shoot Up Another 200 Percent

Bitcoinist August 16, 2020
Updated 2020/08/16 at 9:17 AM
4 Min Read

A report issued by San Francisco-based cryptocurrency exchange Kraken says that bitcoin’s volatility is at an all-time low, and that the currency could potentially shoot up another 200 percent in the coming months.

Kraken Says Bitcoin’s Volatility Is Super Low

At the time of writing, the world’s number one cryptocurrency by market cap has surged into the $11,800 range after spending the last few days trading for approximately $11,500. This marks a $300 surge in just 24 hours. The currency was trading for $11,900 at the beginning of the week and seems poised to retake this position in the coming days.

The last few weeks have been a bit odd for the digital asset, with the price surging and dropping by anywhere between $100 and $600 every so often, but with this new data set forth by Kraken, it seems the currency is poised to venture deeper into bullish territory.

The volatility level of bitcoin is at the lowest it’s been in approximately 21 months. At press time, this level is 23 percent. There have only been a dozen instances in which bitcoin’s volatility reached similar lows during its brief, yet significant history. Each time, those periods have preceded rallies of approximately 140 percent or more, and the trading platform believes this could soon happen for BTC all over again.

In addition, bitcoin is showing a strength it’s never exhibited before. In the past, July has typically proven to be a relatively weak month for everybody’s favorite cryptocurrency, though according to research from Kraken, the asset surged more than 20 percent last month, proving that its strength and resilience have only increased during the past 30 days.

During the month of July, the price of bitcoin rose from the high $9,000 range into the low $11,000 range, meaning the asset surged by more than $1,000. In addition, the jump into five-figure territory ultimately occurred in less than 24 hours.

Could This Be the Start of Something Very Big?

Kraken believes that both plans for an additional stimulus package in the United States and banks getting the greenlight to offer crypto custody services to customers had a lot to do with that rally. In a statement, the company explained:

Nearly two-and-a-half years later, bitcoin finally broke up and out of the pennan pattern formation in late July, signaling the start of what many believe to be the next bull market cycle.

As good as all this sounds, Kraken is warning users not to celebrate just yet. Its data is on the edge, and the company stated that bitcoin’s volatility can increase or decrease without warning. In the end, Kraken warned that bitcoin has only been above $11,500 for about 2.5 percent of its life, meaning that while the surge is positive, the ground bitcoin resides on is still relatively shaky.

The post Kraken: BTC Could Shoot Up Another 200 Percent appeared first on Live Bitcoin News.

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