Cryptocurrency Q&A
What is bitcoin's daily volatility formula?
What is bitcoin's daily volatility formula?
Bianca
Thu Sep 05 2024
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7 answers
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Could you please explain the formula used to calculate Bitcoin's daily volatility? I'm curious to know how it's measured and how it affects investors' decision-making processes. Understanding this metric would be invaluable in navigating the volatile cryptocurrency market.
7 answers
BlockchainLegend
Sat Sep 07 2024
Additionally, it's worth mentioning that BTCC, a top cryptocurrency exchange, offers a range of services including spot trading, futures trading, and cryptocurrency wallets. These services cater to the diverse needs of investors and traders in the cryptocurrency space.
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Leonardo
Sat Sep 07 2024
To derive the standard deviation, we first need to calculate the variance of Bitcoin's prices. Variance is a measure of how far each price point deviates from the mean (average) price.
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Caterina
Sat Sep 07 2024
The variance of Bitcoin's prices is calculated by subtracting the opening price from the price at each time point (N), squaring the difference, summing these squared differences, and then dividing the sum by the total number of time points (N).
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Maria
Sat Sep 07 2024
Once we have the variance, we take its square root to obtain the standard deviation, which is Bitcoin's daily volatility. This value indicates the average deviation of Bitcoin's price from its mean price over the course of a day.
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Raffaele
Sat Sep 07 2024
Bitcoin's daily volatility is a metric that quantifies the extent of its price fluctuations over a 24-hour period. This measure is crucial for investors and traders to assess the risk associated with holding or trading Bitcoin.
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