Understanding the Volatility of Bitcoin and Related Stocks
Volatility, which measures price variations over time, is an essential aspect of the cryptocurrency market.
- The Bitcoin Volatility Index, established in 2011, is a useful tool for tracking price fluctuations.
- 30-day BTC price volatility has seen a significant decrease since 2021.
- Historical data indicates a trend of decreasing volatility over the years.
Analyzing Bitcoin Volatility Patterns
Since 2012, BTC price volatility has shown a series of descending highs, pointing towards a reduction in volatility over time.
- Post-2012, volatility peaked in 2013 at over 14% after the first halving.
- Volatility reached above 8% during the 2018 bull run and more than 5% during the recent bubble.
- 30-day volatility dipped to around 1% by the end of 2022, with occasional peaks above 3%.
The Volatility of Nvidia Stocks
Comparing the volatility of Bitcoin with stocks like Nvidia reveals interesting insights.
- In July 2024, Bitcoin exhibited fluctuations of around 13%, while Nvidia stocks saw fluctuations above 14%.
- Nvidia shares have shown varying levels of volatility compared to Bitcoin in recent months.
Exploring Mining Stock Volatility
Stocks of companies involved in crypto mining display high volatility levels, amplifying trends seen in Bitcoin.
- MARA and RIOT stocks have shown significant fluctuations, with some peaks exceeding 30%.
- The volatility of mining stocks surpasses that of both Bitcoin and Nvidia shares.
Evaluating Ethereum Performance
Similar to Bitcoin, Ethereum’s price volatility has been decreasing over the years but remains slightly higher than BTC.
- The Ethereum Volatility Index indicates reduced volatility in the price of ETH in recent months.
- Nvidia stocks have exhibited higher volatility compared to Ethereum in certain periods.
Hot Take: Navigating Crypto Market Volatility
Despite fluctuations across various assets, understanding volatility trends can help you make informed decisions in the dynamic crypto market.
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