Bitcoin Volatility Continues to Decline, Making it Less Risky
Bitcoin’s volatility has been steadily decreasing in recent years, according to Bloomberg senior macro strategist Mike McGlone. He believes that Bitcoin still has room to decline in volatility, although it is still higher than the volatility of gold. This decrease in volatility is making Bitcoin a less risky asset compared to traditional stores of value.
Key Points:
- Bitcoin’s volatility is still about 3 times higher than that of gold.
- The days of big price moves for Bitcoin are likely over.
- Bitcoin’s growing adoption in traditional finance is a sign of its maturation.
- The Federal Reserve’s rate hikes and a strong US dollar are putting pressure on Bitcoin’s price.
- Bitcoin’s price recently jumped 0.5% but trading volume has decreased by 10%.
Despite the decline in volatility, Bitcoin may not experience a sudden price jump or reach new all-time highs due to these macro factors. The decrease in volatility, however, is a positive sign for the overall stability and maturity of the cryptocurrency market.
Hot Take:
The decline in Bitcoin’s volatility is a positive development for crypto investors. It indicates a greater level of stability and decreased risk compared to previous years. While Bitcoin may not see dramatic price increases in the near future, this decrease in volatility is a step towards wider adoption and acceptance of cryptocurrencies in the traditional finance industry.
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