On Friday, investment management firm VanEck released new research indicating that Bitcoin’s price movements are less volatile than between a quarter and a third of the stocks listed on the S&P 500. In a blog post, the German issuer of exchange-traded products said that while Bitcoin (BTC) has long been considered a “nascent and volatile asset outside of the traditional stock and capital markets,” the reality shows that the world’s largest cryptocurrency trades with volatility comparable to that of some of the largest companies in the world. On a year-to-date basis, 29% of S&P 500 stocks experienced more volatile price …

Bitcoin (BTC) has risen to rarely seen price highs, currently stalling between $17,000 and $18,500 before deciding on its next move. Gold recently broke all-time U.S.-dollar price highs, surpassing $2,000 per ounce before pulling back and consolidating in price. Bloomberg Intelligence strategist Mike McGlone thinks the same could happen with BTC. “Short term, $20,000 is pretty good resistance,” he said in a Bloomberg interview on Wednesday. “I’m afraid it’s probably going to do what gold did. It got to $2,000, and then that’s been consolidating in a bull market since.” Bitcoin rose to just shy of $18,500 on Tuesday before …

"Bitcoin has failed as means of payment" is one of the prevalent criticisms of Bitcoin (BTC) that Fidelity Digital Assets is seeking to rebut. In a blog post published on Nov. 13, the firm took on six “persistent” criticisms, including Bitcoin's volatility, environmental wastefulness and use in illicit activities. Regarding the coin's purported failure as a means of payment for everyday transactions, Fidelity's argument is that this criticism fails to understand Bitcoin's core purpose. The currency is outperformed, Fidelity accepts, by conventional payment rails like Visa, Mastercard and PayPal, all of which can offer higher throughput. However, Bitcoin has been …

A report published by major U.S.-based crypto exchange Kraken has identified signs the correlation between Bitcoin (BTC), the greenback, and legacy markets, is continuing to weaken. Kraken’s September volatility report found Bitcoin (BTC) largely maintaining a negative correlation with the U.S. Dollar Index (DXY) since May, despite a brief coalescence between the two markets in early September. The report attributes BTC’s dollar divergence to the U.S. Federal Reserve’s plan to maintain zero percent interest rates until at least 2023, in addition to declining growth rates. Meanwhile, Bitcoin has shown positive correlation with the Euro since May. The report notes that …

In its August 2020 volatility report, U.S.-based cryptocurrency exchange Kraken has predicted that September will bring excessively negative returns for Bitcoin (BTC). The report notes that historically, September is Bitcoin’s worst-performing month, with an average return of -7%. It points out that as Bitcoin has underperformed its average returns for most months of 2020, this month’s performance was likely to be even worse than usual. Despite the bearish outlook for the short-term, the report identifies some glimmers of hope, including that a record share of Bitcoin’s supply has not moved in more than 12 months — with Kraken noting that …

The price of Bitcoin (BTC) has recently shot up after months of stability. In April and May, trading prices came in between the narrow range of $9,000 and $10,000, with realized volatility falling to its lowest in three years by mid-July. The speculation behind the price move has come amid economic uncertainty brought about by the COVID-19 outbreak, coinciding with record low-interest rates and an increasingly volatile stock market. The question is: Will the recent rebound in the cryptocurrency reflect the start of a price spike, which was last seen in 2017? The recent Bitcoin surge has actually coincided with …

Ari Paul, co-founder and CIO of crypto hedge fund BlockTower Capital, believes Bitcoin’s (BTC) next parabolic move will soon be triggered by hyperinflation caused by the monetary policies of central banks. According to Paul, the Federal Reserve will eventually need to devalue the dollar as a means to pay its increasingly high sovereign debt. In that scenario, according to Paul, we’ll enter a period of hyperinflation similar to the Great Inflation of the 1970s. During such an event, investors could move their wealth away from dollars and Treasury bonds into inflation-resistant assets. “If we have a return to something like …

A recent report by crypto derivatives platform, Zubr, found that despite being extremely volatile when compared to traditional asset classes, Bitcoin (BTC) maintains a “market equilibrium” nature for the majority of the time. The report just a few days after Bitcoin rallied beyond the $12,000 mark and its volatility finally recovered from a multi-year low. Using data from CoinAPI, a cryptocurrency market data provider, Zubr found that Bitcoin price swings are typically accompanied by nearly symmetrical movements on the opposite side, creating opportunities both on the positive and negative side. According to Zubr: “The majority of the time, Bitcoin will …

At the same time that volatility and short-term implied volatility have been sucked out of the market, longer dated options (six months or so until expiration) are still pricing closer to their historical average volatility in the 70% range. This steepness in implied volatility term structure suggests one of two things: Investors expect that this period of low volatility will be transitory and that a catalyst in the next couple of months will once again rock markets, or perhaps sellers of options are just not willing to make a longer-term bet, and as such, are not providing any supply in …

The first half of 2020 has been wild for just about everyone in every asset class. In early March, when it became evident that COVID-19 was a seismic event, asset markets across the globe crashed. One important reason was that levered investors suddenly received margin calls and were forced to liquidate assets to satisfy them. When the only thing anybody cares about is cash, there is no such thing as a safe asset or a defensive investment. During the crash, companies rushed to access their revolving credit lines, bolstering cash reserves as quickly as possible in fear that if they …

Though Bitcoin’s (BTC) correlation with gold has diminished, the asset’s correlation with the S&P 500 stock market index is on the rise, researchers from Kraken exchange found. Kraken Intelligence, a research arm of major United States cryptocurrency exchange, Kraken, released a “Bitcoin Volatility Report” for June 2020. Bitcoin’s volatility hits a 6-month low Published on July 9, the new report outlines a 31% drop in Bitcoin trading that resulted in a six-month low of Bitcoin’s annualized volatility, which accounted for 51% in June. According to the report, the significant decline in volumes and volatility marked June as the quietest month …

Michael Novogratz, one of the biggest Bitcoin (BTC) bulls in the world, does not recommend investors to put the majority of their funds into Bitcoin. Although Novogratz is confident that Bitcoin “way outperforms” the precious metal, it is still safer to buy more gold than Bitcoin due to the cryptocurrency’s highly volatile nature. Bitcoin is still “early in the adoption cycle,” Novogratz says “My sense is that Bitcoin way outperforms gold, but I would tell people to have a lot less Bitcoin than they have gold, just because of the volatility,” Novogratz said during CNBC’s Fast Money on July 8. …