According to crypto data provider Kaiko, Bitcoin’s volatility has fallen below that of the Nasdaq and the S&P 500. Compared to stock markets, cryptocurrency markets have become less reactive to volatile macro events, including high inflation, a rising dollar, rising interest rates, ongoing war and the energy crisis, the company explained.
Bitcoin volatility is at multi-year lows
According to CNBC, Bitcoin has become less volatile than both the Nasdaq and the S&P 500. The crypto data firm explained on Friday that BTC’s 20-day volatility has fallen below that of the two stock indices for the first time since 2020.
Clara Medalie, Kaiko’s head of investigation, told the news channel:
Bitcoin volatility is at a multi-year low, while stock volatility is only at its lowest level since July.
“Stock markets have certainly been volatile in recent months due to high inflation, a rising dollar, rising interest rates and the ongoing war and energy crisis,” she continued.
Analysts expect the Federal Reserve to raise interest rates by 75 basis points for a fourth meeting in a row in November. However, Mary Daly, president of the San Francisco Federal Reserve, said on Friday that it is time to consider slowing rate hikes.
Medal further detailed:
The data suggests that cryptocurrency markets are less responsive to volatile macro events than earlier in the year, while equity markets have remained highly sensitive.
In addition, Kaiko said Monday that “the gap between the 30-day and 90-day volatility of BTC and stocks has also narrowed since the second half of September, despite BTC’s heightened sensitivity to the release of macroeconomic data.” The data company has elaborated:
BTC has shown resilience to a strengthening USD and rising government bond yields, trading in a narrow range.
What do you think of bitcoin’s volatility falling below that of the Nasdaq and the S&P 500? Let us know in the comments below.
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