Metrics: Bitcoin Is More Stable Than the Stock Market

  • The 30-day realized volatility of Bitcoin has dropped below that of the Nasdaq and the S&P 500.
  • Markets for cryptocurrencies are now less responsive to erratic macro events.
  • The BTC market has been bearish in the past 24 hours.

While the economy is in a state of instability, Bitcoin is keeping stable. For the first time in two years, the 30-day realized volatility of bitcoin has dropped below that of the Nasdaq and the S&P 500. This is supported in research by Documenting Bitcoin.

Simply put, the price of Bitcoin has been far less volatile during the past month. Equities and cryptocurrency market volatility had both reached a 40-year high just prior to the 30-day period in question.

Compared to equity markets, however, cryptocurrency markets have become less reactive to volatile macro events. These include high inflation, an appreciating dollar, rising interest rates, ongoing war, and the energy crisis, Kaiko, a digital assets data provider explained.

Since October 2020, the Nasdaq has never been more volatile than Bitcoin. Additionally, the largest cryptocurrency in the world has been more stable than the S&P 500 for the first time since August 2020.

Notably, despite the fact that bitcoin was intended to be an alternative to conventional financial investing, it has occasionally shown a strong correlation with equities.

However, according to information from IntoTheBlock’s correlation matrix, Bitcoin now has a correlation coefficient of about 0.3 with both the Nasdaq and the S&P 500. There is less association the closer this number goes near to zero. Conversely, the markets are increasingly correlated the closer they get near 1.

In other words, this Autumn, Bitcoin is actually beginning to separate from equities. It is to be seen if Bitcoin will continue to be this way.

In other updates, Bitcoin has been trading in the red zone for the past 24 hours. According to Coinmarketcap, the leading cryptocurrency`s price today is $20,764.63 with a 24-hour trading volume of $45.6 Billion.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer