Bitcoin is now less volatile than the S&P 500 and Nasdaq
Bitcoin (BTC) held on to gains above $21,000 on November 5 as the US dollar posted a rare large daily decline.
Dollar dives 2% as risk assets recover
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on previous strength to hit highs of $21,473 on Bitstamp – a new seven-week high.
The pair had benefited from the latest US economic data, while the dollar conversely suffered. The U.S. dollar index (DXY) lost 2% in a day for the first time in years, adding to risks.
“And just like that Bitcoin took out all the highs, the volume is increasing and it’s back above $21K,” Michael van de Poppe, CEO and founder of trading firm Eight, commented.
“I guess we continue towards $22.5K from here, but have a small correction before we continue (when we took out all the liquidity). Buy the dip season.”
BTC had previously been notorious for its lack of volatility and narrow trading range, helping it beat even stocks for the first time ever.
“For the first time in history, bitcoin is less volatile than both the S&P 500 and Nasdaq,” Yassine Elmandjra, a cryptoanalyst at ARK Invest, notedlinks to the firm’s latest report, “The Bitcoin Monthly.”
“The last time volatility was this low, bitcoin rose from $9,000 to $60,000 in less than a year.”
Meanwhile, Tyler Winklevoss, co-founder of trading platform Gemini, revealed a belief that crypto markets will continue to act as a leading indicator of the overall market trajectory, as in 2021.
“Crypto was the first asset class to crash; it will be the first to rise again,” he in summary.
Bitcoin more stable than major fiat currencies
Continuing on the theme of low volatility, ARK’s report, led by renowned analyst David Puell, showed that it wasn’t just stocks that were undercut by Bitcoin’s stability.
Related: Why is the crypto market up today?
“Bitcoin’s relative volatility has declined not only relative to stocks, but also to major currency pairs. As macro uncertainty and USD strength have increased, foreign currency pairs have been adversely affected while bitcoin has been relatively stable,” The Bitcoin Monthly said.
“Bitcoin’s 30-day realized volatility is almost equal to that of GBP and EUR for the first time since October 2016. While Fed hawkishness may continue its volatility, bitcoin’s strength against foreign currencies is an encouraging sign.”
As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, has predicted the end of the current bear market by the start of 2023.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
