How the tables have turned.
Cryptocurrency critics often cite volatility as the reason they invest in traditional portfolios, but it turns out that Bitcoin may be the old reliable option now.
As economic instability surges across the stock market, Bitcoin is holding relatively steady (for now).
According to crypto data, Bitcoin’s 20-day realized volatility (a metric that measures the daily changes in the price of Bitcoin) has fallen below both Nasdaq and the S&P 500’s level for the first time since the start of the pandemic provider Kaiko.
That means Bitcoin’s price has been less unsteady over the past three weeks. Of course, that comes on the heels of 40-year highs in volatility for Bitcoin, Nasdaq, and the S&P 500 – so it may just be a lull in the storm.
There are signs that BTC is starting to uncouple from stocks and could soon be a preferable option for those looking to sidestep the economic uncertainty being painted by war, commodity shortages, and political upheaval.
But whether or not it will stay this way remains to be seen, and it’s uncharted territory for crypto experts.