Crypto Volatility Resurges in Q2 2021
Bitcoin's price swings are in the news again, as tweets from Elon Musk to headlines from China drove the cryptocurrency to slip from all-time highs achieved in Spring 2021. While Bitcoin's volatility is nothing new, some crypto investors believe Bitcoin tends to be more volatile on weekends. We examine this assumption in this report and discuss near-term catalysts that could drive further volatility.
BTC and ETH movements seem to be largely event-driven in recent periods. The top two cryptocurrencies have largely moved in response to headlines in 2021. This marks a shift in the past, in our view, during which prices would spike or tumble for seemingly no reason. This seems to support the notion that the market for these cryptocurrencies is becoming more efficient and robust.