May turned out to be the most volatile month in 2021. The range of price fluctuations of the largest cryptocurrencies Bitcoin (BTC) and Ether (ETH) turned out to be at an annual high.
The last time about the same volatility in the crypto market was observed in March last year. Recall that in 2020, the most shocking day was the so-called Black Thursday, March 12.
Since the beginning of this year, the market has periodically observed surges of volatility, but they turned out to be much weaker than the May turbulence.
BTC and ETH rates on Thursday, May 27, rose to $ 40,179 and $ 2851, respectively. The day before, bitcoin tried to gain a foothold at values ​​above $ 40,000, but it lacked proper support. As a result, the coin went negative again, falling in price to $ 37,000.
Bitcoin’s volatility index in May was the highest in 2021, according to ByBt.
A similar situation is observed with ether volatility. In a report from the Skew team, ETH experienced the biggest turbulence on a monthly basis last March.
If we take data from 2015 as a basis, we can see that at the end of 2017, the ETH volatility index was at about the same level as in May 2021.
Analysts emphasize that now is the time to activate traders who prefer higher risk. Investors who are more focused on stability should switch to a wait-and-see strategy – this will be the most optimal behavior for this category of players.
Turbulence still persists in the market, which suggests that at any time the prices for bitcoin and ether can swing strongly in any direction.
The latest data from the Glassnode platform shows long-term investors have taken advantage of the recent collapse in BTC value.
Researchers found that the number of so-called storage addresses reached 545,115 in mid-May (+16,445 per week). Cumulative analysts call those wallets that accept funds, but do not send them anywhere.
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