𝘽𝙞𝙩𝙘𝙤𝙞𝙣 𝙑𝙤𝙡𝙖𝙩𝙞𝙡𝙞𝙩𝙮 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 🚨
Since its creation, Bitcoin has been known for extreme volatility. However, a study using an optimal GARCH model on daily data shows a significant decrease in Bitcoin’s price volatility from December 2010 to June 2015 and from January 2015 to June 2015.
Key Findings:
- First Interval (Dec 2010 - June 2015): High persistence in volatility, indicating a long memory process.
- Second Interval (Jan 2015 - June 2015): Less volatility persistence, showing a decrease in fluctuations.
Despite this notable decrease, the Bitcoin market isn't fully mature yet, as negative shocks still heavily influence its movements.
