Bitcoin’s 30-day volatility has been trending lower than that of Nasdaq and S&P 500, according to recent data. This trend is noteworthy as it indicates a decrease in the price fluctuations of Bitcoin, a cryptocurrency known for its volatility.
The data was provided by IntoTheBlock, a platform that offers real-time on-chain analytics and market intelligence on crypto assets. The platform’s insights reveal that Bitcoin’s volatility, defined as the standard deviation of the last 30 days’ daily percentage change in BTC price, has been trending lower.
A surprising twist in market trends! The 30-day average intra-day move for Bitcoin is currently lower than traditional markets. This indicates a period of relatively low volatility for BTC, contrasting with the usual narrative.
— IntoTheBlock (@intotheblock) November 29, 2023
This trend is particularly interesting when compared to the volatility of traditional financial markets like the Nasdaq and S&P 500. Despite the general perception of cryptocurrencies being highly volatile, Bitcoin’s 30-day volatility has been lower than these major indices.
Interestingly, the data that was previously discussed pertains to Bitcoin in relation to the Western market. However, when we shift our focus to the Eastern market’s traditional stocks, we observe a slightly different trend. According to statistics from IntoTheBlock, Bitcoin’s average intra-day move over 30 days stands at 0.32%, whereas for the Nikkei 225, it is slightly higher at 0.36%.
The Predictions of Bitcoin’s Future Price Growth
This decrease in volatility comes amidst predictions of the world’s first cryptocurrency price reaching $100,000 in 2024. Such predictions are based on various factors including market trends, investor sentiment, and macroeconomic conditions.
On Wednesday, November 29, Bitcoin’s price once again surpassed the $38,200 mark, reflecting renewed interest from institutional investors. Geoff Kendrick, the Head of Crypto Research at Standard Chartered Bank, has reiterated the bank’s positive outlook, forecasting that Bitcoin could reach a value of $100,000 by 2024.
However, it’s important to note that while the trend of lower volatility is a positive sign for the stability of Bitcoin, the cryptocurrency market is still subject to sudden price movements due to its nascent and speculative nature. In conclusion, the recent trend of Bitcoin’s 30-day volatility being lower than that of Nasdaq and S&P 500 highlights the increasing maturity of the cryptocurrency market. However, the market remains unpredictable, and potential investors should remain informed about the risks involved.