ADS Capstone Chronicles Revised

The 30-day volatility chart shows a sharp increase this week, indicating varied price swings. Higher volatility can be beneficial and risky for traders, as it could lead to greater potential rewards and increase the risk of losses. Understanding this volatility allows traders to weigh the risks and rewards associated with their trades. 7.0.4 Thirty-Day Rolling Volatility Figure 8 displays the 30-day rolling volatility for Bitcoin (BTC-USD) from June 1, 2024, to July 8, 2024. This volatility metric provides insights into the extent of price fluctuations over the specified period. Initially, the volatility was relatively high, hovering around 0.14 at the beginning of June. A gradual decline is observed throughout the month, reaching a low point around June 22. This decrease in volatility suggests a period of reduced-price swings, indicating a more stable market during this timeframe. An upward trend

in volatility is evident from late June to early July. The metric increases from 0.09 to approximately 0.12 by July 8. This rising volatility indicates that increased price movements could suggest a period of uncertainty or heightened trading activity in the market. Such fluctuations are significant for traders, as higher volatility often presents opportunities and risks, necessitating careful analysis and strategy adjustment to manage potential market impacts effectively. The overall pattern of the 30-day rolling volatility suggests Bitcoin experienced both stable and turbulent phases during this timeframe, reflecting the dynamic nature of cryptocurrency markets. Understanding these volatility trends can assist traders in assessing market conditions and making informed trading decisions.

Figure 8 Thirty-Day Rolling Volatility

7.0.5 Average Daily Percent Change by Weekday During the exploratory data analysis, an interesting finding emerged when calculating the

average percent change over the entire dataset spanning three years. The study revealed a consistent pattern of price fluctuations across the seven weekdays. In Figure 9, the Bitcoin chart

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