Author: Sam Bourgi. CoinTelegraph; Compiled by: Whitewater, Golden Finance
The price of BTC has experienced wild fluctuations after failing to hold above $100,000 in December, but according to data from ARK Invest, the cryptocurrency’s movements are nothing out of the ordinary.
ARK Invest’s December ‘Bitcoin Monthly’ report compares BTC’s monthly and annual realized volatility – a measure of how much an asset’s price moves over a specific period of time. Although Bitcoin’s volatility spiked at the end of the fourth quarter, it was “not significant from a historical perspective,” the report said.
In the accompanying chart, ARK shows that relates to annual volatility Bitcoin’s monthly volatility was relatively low in December.
Bitcoin’s monthly volatility (green line) compares to Q4’s annual volatility (purple line) Relatively mild. Source: ARK Invest
Low relative volatility means Bitcoin has not yet reached the feverish phase of its cycle, which means further upward momentum is likely, especially in a bull market .
“In fact, these data points suggest there is room for further market expansion in 2025,” ARK’s report said.
The report cited several other bullish indicators for Bitcoin in December, including mining difficulty, holder behavior and short-term holder cost basis.
Regarding strong holder behavior, Data from ARK shows that 62% of the Bitcoin supply is in a There has been no movement in over a year, even as the asset recorded over 100% gains in 2024.
Anticipations are growing ahead of Trump’s inauguration
After Donald Trump’s election, the price of Bitcoin in December Passing $100,000, he promised to usher in a new era of cryptocurrency for the United States.
During the presidential campaign, Trump vowed to make the United States the Bitcoin and cryptocurrency capital of the world.
Ahead of the inauguration, the president-elect selected crypto-supporter Paul Atkins to serve as chairman of the key Securities and Exchange Commission. Days later, he named David Sacks as his chief cryptocurrency and artificial intelligence advisor. The cryptocurrency community expressed strong support for the move.
Pantera Capital expects a Trump presidency to further legitimize Bitcoin and cryptocurrencies, driving prices to record highs in the coming months.
According to the Washington Post, Trump is expected to sign an executive order specifically targeting cryptocurrencies after taking office on January 20. These “day one” executive orders are intended to further clarify cryptocurrencies’ priorities for the incoming administration.