Bitcoin's volatility was on full display on Wednesday when its price fell from $6,300 to $6,100 before shooting up to $6,500 – all within an hour's time.

As of press time, the world's largest cryptocurrency by market capitalization was trading at $6,422, up 5 percent from the day's low of $6,117. The market did not waste time making its bullish move, scaling over 6 percent in less than 20 minutes to ultimately hit a high of $6,494, according to CoinDesk's Bitcoin Price Index (BPI).

CoinDesk - Unknown

Coincidentally, the move occurred within just minutes of a CBOE Bitcoin Futures expiration. Bitcoin futures expirations have been documented as having a turbulent effect on the price of the underlying cryptocurrency, so an increase in market volatility perhaps could have been foreseen.

Bitcoin's move today is more shocking than its usual volatility, as an important technical level of price support of $6,200 was breached, signaling bears were primed to drive prices lower. Evidently, that turned out not to be the case since it is clear demand still exists above the $6,000 mark.

CoinMarketCap data shows that the total market capitalization for the cryptocurrency market rose to roughly $201 billion during the market uptick, up roughly 4 percent and $8 billion from Wednesday's low.

At the time of writing, the 24-hour growth for other well-known cryptocurrencies is not quite as dramatic, although seven of the ten biggest cryptocurrencies by market capitalization have seen positive price developments. Cardano (ADA) is leading the pack, currently printing a six percent appreciation compared to Tuesday's figures. 

Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.

Roller coaster image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC