Bitcoin Outshines Amazon and Meta: Uncommon Stability in Low Volatility
The extreme unpredictability commonly associated with bitcoin price fluctuations distinguishes it from more traditional assets such as precious metals, fiat currencies, and reputable stocks.
Interestingly, the world’s largest cryptocurrency in terms of market capitalization, bitcoin, currently exhibits less volatility than tech giants Amazon and Meta.
The annualized volatility of Bitcoin, which measures the standard deviation of its daily percentage price changes over the past 30 days, is presently around 32%.
This figure is notably lower than its historical average volatility of 71%.
Bitcoin’s unusually low volatility can be attributed to what traders commonly refer to as the “summer lull,” a period traditionally characterized by reduced trading activity. In fact, this summer appears to be on track to be the calmest since 2020.
While bitcoin’s volatility is not yet comparable to that of stable assets like gold or Apple stock, its current level of stability surpasses that of Meta and Amazon, with volatility rates of 44% and 34%, respectively.
For comparison, the volatility rate of the Dow Jones Industrial Average currently stands at 13%.
READ MORE: USDT Market Cap Skyrockets: Is a Crypto Bull Market on the Horizon?
Laura Vidiella, a vice president at crypto investment firm LedgerPrime, believes that bitcoin’s recent respite from volatile price movements does not indicate a significant shift.
“Low volatility reflects the market’s perception of price movement at this moment, based on the available information,” she explained. “However, I don’t anticipate it becoming the new norm just yet. I expect substantial price swings and increased volatility to return in the fall.”
If Vidiella’s prediction holds true, it aligns with the expectations of Arthur Hayes, co-founder and CEO of Maelstrom, who anticipates an upcoming surge in bitcoin prices.
“This week, I stated that the real bitcoin bull market and the ensuing fireworks will commence in the late third and early fourth quarter of this year,” Hayes wrote.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
