The next time your grandmother criticizes you for your decision to invest part of your income in Bitcoin, you can tell her that you simply didn't have the guts to invest in more volatile assets - like stocks.
According to experts, BTC has recently shown less price volatility than some of Wall Street's most popular stocks, including Amazon, Netflix, Nvidia. CBOE Options Institute senior lecturer Kevin Davitt indicated that Bitcoin's 20-day historical volatility (HV) fell to 31.5%.
For comparison, Amazon's 20-day HV is 35%, Nvidia's is 40%, and Netflix's volatility is almost double Bitcoin's at 52%. Bitcoin is currently nearly as stable as Apple (AAPL), the world's most valuable company.Apple, whose market capitalization exceeds $1 trillion, has a 20-day volatility of 29.3%.
The cryptocurrency market is becoming more mature, Davitt said, and the decline in HV could be an indicator of “structural changes” in the ecosystem.
We may be seeing a maturing market. While it is too early to declare the end of this problem, the consistency of the price range over the past few weeks may indicate a structural shift. Time will show.
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