Bitcoin volatility now less than that of the S&P 500
Bitcoin has pretty much become a stable coin as of late.
If you have checked prices recently for bitcoin (not counting the last couple hours), prices have been pretty much in the same price range every single time you checked.
The trading range for bitcoin has been roughly $6,200 to $6,500 for weeks and weeks now.
This continued sideways action has made bitcoin the least volatile it has been in years.
More about it can be seen here:
https://steemit.com/bitcoin/@jrcornel/bitcoin-continues-to-go-sideways
But low volatility on bitcoin really isn't THAT low of volatility in the grand scheme of things, right?
Wrong!
Check this out...
Over the past 10 days the volatility of bitcoin is significantly less than that of the S&P 500 over the same time period.
What's more, if you look at the volatility of the S&P 500 compared to that of bitcoin, we are hitting record low levels here:
(Source: https://twitter.com/charliebilello/status/1055622075006812161)
Meaning that there rarely has been a time in bitcoin's history when bitcoin was this much LESS volatile than the S&P 500.
In fact, this is the largest difference in volatility between the two, EVER!
Ironically, many stock investors say they won't buy bitcoin due to its extreme volatility.
Yet they have been buying stocks that are currently running circles around bitcoin in terms of volatility.
Perhaps they should stop buying stocks now too?!
Hmm... stick that in your pipe and smoke it stock-homers!
Stay informed my friends.
Image Source:
https://www.cryptocompare.com/coins/guides/5-things-you-need-to-know-about-bitcoin-volatility/
Follow me: @jrcornel
Good info!
Why thank you corndog, glad you found it useful.
I noticed that but Bitcoin went skkkkrrrrrin the last few hours. Fingers crossed hoping it gets better.
Yea but it still hasn't broken the trading range. A break below $6,200 wouldn't be good, but not the end of the world. A break of $6k would be pretty significant though.
Does this 'calm' signal any storm to come, JR? Personally, I understand an average person's hesitations. What truly excites me is the progress all of these events inspired in terms of the conversation around cryptocurrency. Groups are making coins, creating ICO's, and business forming blockchains. I cannot make a prediction now, but I appreciate the timing of my involvement in this space more than ever.
Yes it likely does. Often periods of low volatility are followed by periods of high volatility. The only question is whether prices break out to the upside or the downside. Still waiting for a decisive breakout.
I think this is a contrarian indicator so watch for bitcoin volatility to come back soon which makes sense given the amount of consolidation the price has had in the last couple of weeks.
It usually is. It might sound intuitive, but periods of low volatility are often followed by periods of high volatility. The only question is which way do we break?
I love the last part... stick that in your pipe and smoke it. lol
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There are so many people that blast bitcoin due to its volatility yet it has been less volatile than many assets lately.
Funny but true. I have told my banker buds to buy crypto because it’s less volatile, they laugh and i say “I’m not kidding” lmao
Haha nice. Then what do they say?
They are loss for words because their 401k are negative on the year now lol
Yea the charts look pretty bad on the S&P now. Some major trend lines/support lines broke during this recent sell off. I would not be surprised to see a rally form here for a few days, then lower lows in the cards afterwards.
I just recently switch from BTC pairs to ETH given their volatility, it seems I should come back. But also market's are unpredictable and it may seem that the coin is settling in, but if the opposite should occur such as a massive swing to the downside then bitcoin is right back to square one.
What pairs do you like to trade?
There isn’t a specific kind of pair, but I just go down the list and see whichever ones performing bad but has the potential to rise through some technical analysis. Currently I’m trading IOST/ETH and XLM/ETH.
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Stock investors love the volatility. Else they would not have invested in stock but in stable asset like currency or precious metals.
I guess the fact is most of them do not understand how this blockchain thing works and that's the main reason blocking them from trying.
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It really is the only place you can put your money if you want to stay ahead of the game. With 2-3% inflation per year it basically forces you to be in stocks.
The way bitcoin and the stock market is right now I see them remaining just as stable as they are showing right now.