Bitcoin Becoming Less Volatile Than Stocks Raises Warning Flag
- Low volatility, low volume is not a good mix, ARK analyst says
- Crypto’s not a retail asset class anymore, says Galaxy’s Grant
At first blush, Bitcoin becoming less volatile than stocks might appear like a positive development. But crypto traders are warning that in a low-volume environment, that might not be a great thing.
The coin’s 30-day realized volatility has “dropped sharply” in recent days, according to Noelle Acheson, author of the “Crypto is Macro Now” newsletter. It’s currently at around 52% after spending the past month above 64% on an annualized basis, according to Coin Metrics data compiled by Acheson. Meanwhile, Jake Gordon at Bespoke Investment Group points to a volatility gauge called BitVol, which has “begun to break down,” falling to near its lowest levels since the spring. The index currently clocks in at a little above 69, down from more than 111 in May.