This Data, Unseen in Bitcoin Since 2020, Makes Long-Term Investors Happy!

of bitcoin Although its price has been stable recently, this could be good news for users who want cryptocurrencies to become a legitimate asset class.

Bitcoin Volatility Drops Below Stock Indices For The First Time Since 2020

According to digital asset firm Kaiko, after Bitcoin hovered at $19,000 for more than a month, Its volatility is currently lower than both the Nasdaq and the S&P 500.

The data provider said on Friday that Bitcoin’s 20-day volatility fell below stock indexes for the first time since 2020. Indeed, it had dropped enough to match the volatility of the Nasdaq on Monday.

This, cryptocurrencies It’s good news for many crypto investors who hope that softening of the notorious price volatility could bring less fear to potential new investors.

Kaiko also said that the gap between BTC and stocks’ 30-day and 90-day fluctuations has narrowed since mid-September, despite the increasing sensitivity of BTC to macroeconomic data releases.

Although Bitcoin’s correlation with stocks has decreased, it is still high and its price continues to be driven by macroeconomic issues.

Kaiko research director Clara Medalie continued her thoughts in a statement to CNBC:

“BTC volatility is at its lowest level in years, while stock volatility is at its lowest level since July.

Equity markets have definitely been volatile over the past few months due to high inflation, the appreciated dollar, rising interest rates, and the ongoing war and energy crisis. The data shows that crypto markets are less responsive to volatile macro events compared to earlier in the year, while equity markets remain highly sensitive.”

*Not investment advice.

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