Bitcoin has unusual relationship with volatility
All bubbles are accompanied by hype, but hype is not proof we are in a bubble. One quantitative bubble test considers the relation between asset price and volatility. The mathematics get intimidating, but the general idea is that if volatility increases too fast as price goes up, an asset price has to go to either infinity or zero. Because it can’t go to infinity, it has to go to zero. It will shoot upward and then crash.
