Bitcoin isn’t trading as volatile as stocks

  • 30-day S index volatility&P 500 surpassed Bitcoin for the first time in history.

  • Investor panic triggered a sharp increase in the volatility of the traditionally stable index.

  • Investors are going through a period of uncertainty and fear due to coronavirus.

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In the outgoing week, stock markets again showed increased volatility amid investors’ assessments of the potential consequences of the coronavirus epidemic. Sharp fluctuations in both directions have made it more difficult for market participants to predict future stock movements.

The Dow Jones Industrial Average lost more than 900 points on Friday. Usually, such an amplitude of fluctuations is considered a large-scale fall, but given the range of current sales, this is not the most aggressive drawdown..

However, despite selling on the last trading day, the index remained in positive territory on the weekly charts, gaining 12.8% since Monday. This rebound, in fact, confirms that the market was very oversold at the beginning of the week..


Despite the rise in shares for the week, the overall economic situation did not change significantly.

What is The History of Bitcoin: Super Easy Explanation

Manish Deshpande, Chief US Equity Strategist at Barclays, commented on the matter:

We believe that in the medium term after this rally, risks are shifted downward, as investors continue to be tormented by two more uncertainties – the duration of the economic quarantine due to the virus and the scale of the epidemic’s consequences..

Markets continue to fluctuate amid the rush of news about the pandemic. In the context of a general quarantine in the world, businesses, including retailers, are forced to make painful decisions, which only exacerbates the prospects for the global economy..

Volatility explosion

Due to the unpredictability of news, the markets began to behave very volatile. As @yassineARK tweeted, the S index 30-day volatility indicator&P 500 surpassed Bitcoin for the first time in history.

The s&P 500’s 30-day volatility has now exceeded BTC’s average historic 30-day volatility.

– Yassine Elmandjra (@yassineARK) March 25, 2020

Bitcoin isn't trading as volatile as stocks

This once again demonstrates the presence of increased nervousness in the financial markets. Bitcoin is known to be volatile in nature, while S&The P 500 has traditionally been relatively stable and is now facing a spillover effect from economic turmoil.

Bitcoin and stability

Bitcoin traded fairly stable last week after plummeting on March 12 and 13, when the cryptocurrency plummeted below $ 4,000..

At the same time, interest in Bitcoin trading remains largely due to the uncertainty surrounding the US $ 2 trillion stimulus package and the prospects for widespread hyperinflation..


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