Bitcoin Getting Less Volatile?
Hey folks.
According to a report, Bitcoin is becoming less volatile as it gets mature. Fidelity noted that on a yearly scale, volatility of Bitcoin has reached new all time lows.
Bitcoin has long been viewed as as a highly volatile asset but as it matures, it's volatility will continue to fall, stated by Fidelity Digital Assets in a research report on Wednesday.
Analyst Zack Wainwright stated, "New assets typically take time to undergo price discovery, maturation, and then settle into lower volatility," pointing out that even gold showed considerable volatility during the 1970s U.S. abandonment of the gold standard.
According to the report, the pioneer digital currency Bitcoin has already shown signs of maturation in its existence of 15 years period, and it's volatility has reached a new all time lows ona yearly scale.
Currently, Bitcoin is less volatile than 33 of the S&P 500 companies and was less volatile than 92 of the stocks in the index recently as October 2023, using historical volatility data that is 90 days realized, said Fidelity.
The note stated that the cryptocurrency is more likely to see increased volatility as a result of fresh capital flows, as is the case with any emerging asset classes with a limited market cap.
What are your thoughts on the report?
Its not financial advice.
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