Bitcoin is Less Volatile Than US Stock Options as BTC Trading Price Swings Dip to a 2-Year Low
Even though Bitcoin (BTC) is currently experiencing one of its worst financial runs in quite some time, many market experts can't help but note that this is also a period where the premier digital asset is experiencing its most stable run in nearly 2 years.
To elaborate further on this point we can see that, as things stand, the volatility rate of BTC is currently at its lowest in about 24 months. If that wasn't enough, as the price swings have kept on falling, the world’s largest cryptocurrency by total market cap has now become more stable than a host of U.S. stocks that are available in the market right now.
The Nitty Gritty Of The Matter
Taking a statistical approach towards the entire situation, recent research has shown that Bitcoin volatility is currently on its way to fall to its lowest levels since 2016, when the asset was still in the process of gaining global recognition.
Over the course of the past decade, Bitcoin along with other premier alt-coins such as Ethereum, Ripple, Bitcoin Cash, have emerged as a mainstream asset class unto themselves. However, with that being said, most institutional investors still do not view crypto as a stable financial tool— as a result of which most big moneyed players have stayed away from Bitcoin altogether.
What’s Stopping BTCs Widespread Adoption?
In the past, most economists have cited Bitcoin’s volatility as being the primary factor that is stopping the alt-coin from gaining widespread traction (especially within the payments market). However, now, the discussion seems to be moving towards how various national regulatory agencies (including the US SEC) will treat bitcoin products ETFs (exchange-traded funds) moving forward. Last but not least, a drop in the overall trade volume of BTC over the course of the past few months could also be a factor in the slow adoption of crypto tech across the globe.
When comparing the volatility of the crypto domain with that of the conventional stock options, we can see that since late last September, the price swings witnessed by the SPX have climbed to a near seven-month high— thus prompting more fears of rate hikes by the Federal Reserve in the coming few months.
In closing, it is worth reminding our readers that late last December, Bitcoin soared to an amazing price point of around $20,000 only to drop by 70% through the course of this year. At press time, Bitcoin is currently trading at a stable $6,578.