Bitcoin Currently More Stable than Nasdaq and S&P 500: Kaiko
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According to cryptocurrency analytics firm Kaiko, Bitcoin has become less volatile than both the Nasdaq and the S&P 500. Bitcoin’s 20-day rolling volatility has fallen below that of the two stock indices for the first time since 2020, according to the crypto data company, which revealed this on Friday.
Kaiko’s director of research, Clara Medalie, stated to the media outlet: “Bitcoin volatility is at multi-year lows while equity volatility is only at its lowest level since July.”
She added: “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.”
For the fourth meeting in a row, the US Federal Reserve is predicted by analysts to deliver another 75 basis points rate hike in November. However, Mary Daly, president of the San Francisco Federal Reserve, stated on Friday that it is time to start thinking about reducing the pace of interest rate increases. She noted:
“The data suggests that cryptocurrency markets are less reactive to volatile macro events than they were earlier on in the year, whereas equity markets have remained highly sensitive.”
Finally, Kaiko stated 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 firm further stated:
“BTC has shown resilience to a strengthening USD and surging Treasury yields, trading in a narrow range.”
Bitcoin Entering Maturation Stage: Bloomberg’s McGlone
In other news, the chief commodity strategist at Bloomberg Intelligence, Mike McGlone, believes that Bitcoin “may be entering an inexorable phase of its migration into the mainstream.” The strategist explained that the benchmark cryptocurrency may also “be entering [an] unstoppable maturation stage,” where he expects it to rally in the medium term.
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