Bitcoin and Ethereum Now Less Volatile Than Oil: Report

Bitcoin and Ethereum Appear To Be Experiencing A Period Of Reduced Volatility

Bitcoin and Ethereum, well-known for their erratic price fluctuations, appear to be experiencing a period of reduced volatility.

Surprisingly, oil currently has more volatility than these digital currencies. The 90-day volatility indexes for Bitcoin and Ethereum have fallen to multi-year lows, falling by 35% and 37%, respectively, according to latest Open in a new tab from Kaiko research. As a result, compared to oil, which has a 41% volatility rate, these top cryptocurrencies are now less volatile.

The frequency and magnitude of price movements over time are indicated by market volatility. In the past, cryptocurrencies have been more volatile than oil, as seen by their bigger and more frequent price fluctuations.

Despite the fact that oil currently dominates the Nasdaq and gold in terms of volatility, it has actually fallen from a volatility rate of 63% in July 2022. Increased geopolitical tensions and China’s underwhelming economic rebound following the relaxation of Covid-19 limitations may be to blame for this drop in oil’s volatility.

Kaiko’s research also highlights that both Bitcoin and Ethereum are currently experiencing multi-year lows in terms of liquidity and trade volume, which could contribute to their decreased volatility.

The anticipated launch of an exchange-traded fund (ETF) for Bitcoin may stir up market volatility once again. This gained credibility in the wake of BlackRock’s unexpected ETF application, given the firm’s track record of successful applications and the subsequent actions of other applicants.