Bitcoin(BTC) had a wildly volatile month in June, with the currency’s fluctuation reaching levels it hadn’t seen since April 2020. Last month, the flagship cryptocurrency recorded its lowest prices in five months and at one point its annualized 30-day volatility touched 117.04%.
Bitcoin Showed Record Price Volatility in June
According to data from asset management firm, Blockforce Capital, Bitcoin’s 30-day volatility measure was the highest since April 2020. Additionally, the currency’s annualized 60-day volatility rose as much as 106.39 % on June 25, the biggest leap in the measure since May 11th, 2020.
The largest cryptocurrency experienced these significant fluctuations as its price slipped below the $30,000 support level to $29,031 on 23rd June. This was Bitcoin’s lowest price in the last five months.
Following its temporary crash, Bitcoin quickly rebounded to $34,790 on 25th June, while regaining its previous support level. However, June’s price action charts suggest that BTC repeatedly traded around the $30,000 level throughout the month, declining to $31,035, $31,179, $31,340, and $30,190 on 8th June, 21st June, 25th June, and 26th June, respectively.
Overall, the currency has been trending in the $42,000 to $30,000 range since May, with the lower end representing a 50% drop from its all-time high of $65,000 in April.
Bitcoin Bear Market Potential and Risks
While HODLers are largely optimistic about Bitcoin’s future, there are many risks apart from price volatility that can pull the currency down. Regulation is the first and foremost among them. With China cracking down on crypto mining and the U.K. banning leading crypto exchange Binance, the future of the crypto market is hanging in the balance.
Environmental concerns around Bitcoin’s proof of work consensus also present a real threat to the currency’s potential value. Although proponents of Bitcoin are undertaking initiatives to make its mining eco-friendly, asset managers are facing calls to limit their investments in the primary crypto.
Bitcoin’s recent price struggles have prompted many analysts to issue bear market warnings and debate if the asset qualifies for the label. However, as of now, there’s no agreement on what classifies a Bitcoin bear market.