Bitcoin Goes Wild as Volatility Jumps to Three-Month High

Bitcoin volatility is back to levels not seen since early November, with the bulls and bears sparring at the $10,000 price level.

Historical swings over the past 10 days on the Bitcoin-U.S. dollar pair surged to 65% on Wednesday, the highest level since Nov. 6, according to data compiled by Bloomberg. Bitcoin plunged late in yesterday’s session, going from being little-changed at $10,168 to a drop of more than 8% to $9,327about 45 minutes later. It recovered somewhat after that, and traded Thursday at $9,501 as of 12:52 p.m. in New York.

Bitcoin volatility surges to highest since November

“It could be a technical move with highly leveraged derivatives positions getting called,” said Emmanuel Goh, who runs crypto-derivatives tracker Skew. He noted that some long perpetual swap positions got liquidated on Bitmex around the time of the Wednesday’s drop.