À la une

Bitcoin is now less volatile than the Nasdaq and S&P500 indexes

Published

1 year ago

5 November 2022

The price of bitcoin (BTC) has experienced quiet months, hovering in a price range of $18,000 to $21,000. An almost sideways movement that has been reflected in graphs of the cryptocurrency’s volatility, now lower than that recorded by the most globally recognized stock market indexes.

According to the latest report by investment firm Ark Invest, led by. Cathie Wood, bitcoin currently has lower volatility than the Nasdaq and the S&P 500.that has not been seen since the early 2020s. This fact can be seen as an advantage for BTC, considering that stock indices are often referred to as low-volatility investment assets.

As explains Analyst Yassine Elmandjra of ARK Invest wrote on his Twitter account that the last time bitcoin’s volatility was lower than that of major stock market indices. was in the process of approaching its latest all-time high.When it went from $9,000 to $9,000 at more than $60,000.

According to the analyst, in the current period of bitcoin price stability, financial markets have experienced severe turbulence. The S&P 500 index has been the hardest hit in recent months, falling more than 12 percent between September and October. Although at the time of writing it has recorded a slight recovery of 5 percent.

But “not only has volatility decreased relative to stocks, but several FAANGs (shares of the big five publicly traded technology companies) have underperformed bitcoin from peak to peak,” Elmandjra notes.

So far, Bitcoin’s volatility had been very marked compared to that of the euro (EUR) or the pound (GBP) over the past five years. Source: Ark Invest.

Adds the report that as it declines, the volatility of the parent cryptocurrency will also be approached that of national currencies. such as the euro and the pound. This, after they even devalued below parity with the U.S. dollar in recent months, as reported by CryptoNews.

“Currency pairs have been negatively affected by macroeconomic uncertainty. While bitcoin has remained relatively stable. The realized 30-day volatility of bitcoin is almost equivalent to that of the pound and the euro for the first time since October 2016″, the analyst’s tweet points out.