Lately Dow Jones has become more and more volatile, as of right now it is even more volatile than Bitcoin.
Bitcoin (BTC) has moved in tandem with equities in recent months, as both asset classes have been facing prevalent macroeconomic concerns such as soaring inflation and interest rate rises. However, Bitcoin’s volatility looks to be decreasing in comparison to traditional stocks, as the flagship cryptocurrency shows indications of detaching from equities.
According to statistics given by ZeroHedge, the Dow Jones index, which monitors the 30 top industrial firms, was more volatile than Bitcoin as of October 7.
Bitcoin’s most recent milestone demonstrates the asset’s mature character, as it has been categorized as one of the most volatile assets. Notably, proponents have argued that as Bitcoin develops, as seen by growing use, the asset will become less volatile and trade like other assets.
Bitcoin’s previous volatility
Bitcoin has always been characterized by volatility, whereas traditional financial markets are significantly more stable. The change in volatility, however, may be linked to Bitcoin’s fall from all-time highs, which has seen the commodity settle around $20,000 for weeks.
In this example, the level is seen as a temporary bottom for Bitcoin following an incredible bull run that concluded in an all-time high of about $68,000 in late 2021.
At the same time, Bitcoin’s lower volatility has evolved as a result of a strong dollar, which has caused global fiat currencies to lose value in comparison to the US currency. In this regard, the rising dollar, together with falling commodity prices, may have a negative influence on stock portfolios.
Bitcoin, on the other hand, has remained stable, with investors in some locations resorting to the asset as a hedge against increasing costs.
Meanwhile, Bitcoin is consolidating below $20,000 as bears and bulls battle for dominance. By press time, the asset was trading for $19,500, down less than 1% in the previous 24 hours.
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