Bitcoin’s volatility has fallen below that of the Nasdaq and the S&P 500, according to crypto data provider Kaiko. The firm stated that cryptocurrency markets were less sensitive to volatile macro conditions than equity markets. These include high inflation and an appreciating currency, rising interest rates, wars, and energy crises.
‘Bitcoin Volatility Is at Multi-Year Lows’
Bitcoin has become less volatile than both the Nasdaq and the S&P 500, according to cryptocurrency data provider Kaiko, CNBC reported. The crypto data firm explained Friday that BTC’s 20-day rolling volatility has dropped below that of the two stock indexes for the first time since 2020.
Clara Medalie, Kaiko’s head of research, told the news outlet:
Bitcoin volatility has fallen to multi-year levels, while equity volatility has remained at the lowest point since July.
“Equity markets have certainly been volatile over the past few months due to high inflation, an appreciating dollar, rising interest rates, and the ongoing war and energy crisis,” she continued.
Analysts predict that the Federal Reserve will raise interest rates by 75bps for its fourth consecutive meeting in November. Mary Daly, President of the San Francisco Federal Reserve said Friday however that it was time for interest rates to be slowed down.
Medalie further detailed:
These data suggest that cryptocurrency markets are more responsive to volatile macro events today than they were in previous years, while equity markets remain extremely sensitive.
In addition, Kaiko said Monday that “The gap between BTC and equities’ 30-day and 90-day volatilities has also been shrinking since the second half of September despite BTC’s heightened sensitivity to macroeconomic data releases.” The data firm elaborated:
BTC traded in a tight range despite a stronger USD and rising Treasury yields.
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