Bitcoin volatility: Research Suggests Bitcoin Volatility is Set to Increase in 2022

One in five (22%) of Bitcoin traders who trade at least $1,000 a month in the cryptocurrency expect the level of volatility in the price of Bitcoin to increase dramatically in 2022, and further 57% say it will increase slightly. Only 18% expect it to fall or stay the same, according to a study ⁽¹⁾ from GNY, the leading blockchain based machine learning business.

The two main reasons for an increase in price volatility identified by those traders interviewed was Bitcoin Whales – they hold large proportions of the total outstanding float of Bitcoin – are expected to increase their holdings and become more influential – this is the view of 49% of those surveyed. The same number said that increased developments around the tax treatment of Bitcoin and other cryptocurrencies in 2022 will lead to a rise in volatility.

Some 38% said they expect more security breaches and more being openly disclosed will increase volatility while 38% said volatility will also be fueled by more big companies buying Bitcoin and talking about their holdings.  Nearly one in three (29%) said they expect more regulatory news from around the world to increase price volatility in cryptocurrencies in 2022.

Cosmas Wong, CEO GNY said: “2021 saw some huge fluctuations in the price of Bitcoin and other cryptocurrencies, and our study suggests that 2022 will see a rise in levels of volatility. This presents a huge opportunity for traders to improve their returns, but they are also at greater risk of suffering losses. They need to make more use of trading tools that for example help predict future price movements.”

GNY recently launched BTC Range Report, providing some of the most accurate forecasts around Bitcoin volatility of any platform or service available today. Extensive testing of BTC Range Report has delivered a mean absolute percentage error (MAPE) of between 3% and 7% making it one of the most powerful BTC prediction tools in the market. The average of the majority of competitor BTC prediction tools tested by GNY was 10%, but it was as high as 17% for some platforms.

The BTC Range Report uses proprietary machine learning to forecast Bitcoin volatility. The tool is the first consumer facing product offered by GNY and uses specialized neural nets and a custom RSI to generate optimized forecasting for the projected daily range for Bitcoin.

The BTC Range Report is issued every Tuesday and spans a seven-day period. For the price of just $10, it can be purchased with ETH or GNY tokens, and access is provided directly through the user’s Metamask wallet and is available to purchase on the GNY.io website. Version 1 of the GNY BTC Range Report offers:

• GNY’s daily projected volatility range for BTC as a graph and a table
• a forecast of which day will hold the weekly high and the weekly low
• forecast of daily volumes
• historical daily high and low prediction graph for the last two weeks VS BTC Actuals
• mean absolute percentage error (MAPE) for GNY historical daily high and low predictions VS BTC Actuals for the previous two weeks