Compared to equity markets, crypto-currency markets have become less responsive to volatile macro events, including high inflation, a stronger dollar, rising interest rates, the ongoing war and the energy crisis, the firm said.
Bitcoin volatility at multi-year low
Bitcoin has become less volatile than the Nasdaq and the S&P 500, according to crypto-currency data provider Kaiko, CNBC reports. The crypto data company explained Friday that BTC’s 20-day rolling volatility has fallen below that of the two stock market indexes for the first time since 2020.
Clara Medalie, head of research at Kaiko, told the news outlet:
Bitcoin volatility is at its lowest level in several years, while stock volatility is only at its lowest level since July.
“The stock markets have certainly been volatile in recent months due to high inflation, a stronger dollar, rising interest rates, and the ongoing war and energy crisis” she continued.
Analysts expect the Federal Reserve to raise interest rates by 75 basis points for a fourth consecutive meeting in November. However, San Francisco Fed President Mary Daly said Friday that it’s time to start considering a slowdown in interest rate hikes.
Clara Medalie pointed out:
The data suggests that crypto-currency markets are less responsive to volatile macro events than they were earlier in the year, while equity markets have remained highly sensitive.
In addition, Kaiko said Monday that “the gap between the 30- and 90-day volatilities of BTC and stocks has also narrowed since the second half of September, despite BTC’s increased sensitivity to macroeconomic data releases.“The data company stated:
BTC has shown resilience in the face of a strengthening dollar and soaring Treasury yields, trading in a narrow range.