For the First Time in a Year, Bitcoin Is Less Volatile Than the Stock Market

  • As the stock market takes a wild tumble, volatility measures show that Bitcoin’s price has had less volatility than the S&P 500 index.
  • Bitcoin’s price has held in the six thousand range, telling some that the bear market might be over.

For the first time this year, Bitcoin’s price volatility is lower than that of the S&P 500 Index, a popular benchmark for U.S. equity markets. Using a 10-day historical volatility measure, the S&P 500’s volatility for the past week was 27. This is almost twice the value that Bitcoin clocked: only 15.7, as reported by Bloomberg.

This exchange of volatility happens as both markets are experiencing irregular price patterns. The S&P 500, which has been in a raging bull market for years, is currently undergoing a correction. Since its peak on September 21, 2018, the S&P has dropped as much as 11.5%, its worst down-trend since the beginning of the year.

S&P 500

Stocks have been taking a beating recently as investors express concerns over international trade. Specifically, experts are worried about how President Donald Trump will handle a Chinese trade deal. Many are “not optimistic,” says White House economic adviser Larry Kudlow.

On the other hand, bitcoin has been unusually quiet. Besides October 15, 2018, when bitcoin saw a Tether bank run push its price up 10%, the price of bitcoin has remained fairly constant. Volatility in the bitcoin market has been so slow, some analysts are joking that “bitcoin has become a stablecoin.” Data from CryptoCompare illustrates this:

Bitcoin's been trading within a tight rangeData From CryptoCompare

Bitcoin analysts have been monitoring the cryptocurrency’s volatility for almost a month now. In the beginning of October 2018, momentum started slowing down, and some expressed sentiment that there could be a big move coming. Over the past few weeks, bitcoin's volatility has not come back, as shown in the chart above, and the price has remained relatively stagnant.

Bitcoin's volatility has decline so much its 30-day index dropped to levels it hadn't seen since December of 2016. Some analysts have claimed this means the cryptocurrency is now becoming a store of value, and that it's price will start rising steadily in the future as more ivnestors recognize it as a SoV.

Crypto Market Update: Focus on BTC, ETH, BCH, BNB, XMR, and DASH

Siamak Masnavi

This article provides a quick overview of how the crypto markets have been doing—with the focus on Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB), Monero (XMR), and Dash (DASH)—over the past 24-hour period.

Overall, September 17th is proving to be a bit of a mixed day, with 12 of the top 20 cryptocurrencies (by market cap) in the red at press time (around 06:25 UTC).

BTC-USD

BTC-USD 24 Hour Chart - 17 Sep 2019.png

The bad news is that are still waiting for the launch of Bakkt's physically-delivered daily and monthly Bitcoin futures contracts. So, Bitcoin is still trading mostly sideways, hovering around the $10,300 mark. The good news is that the launch is expected to take place in less than one week (i.e. on September 23), as was confirmed by this tweet that Bakkt sent out on September 16:

ETH-USD

ETH-USD 24 Hour Chart - 17 Sep 2019.png

The Ether (ETH) price continues its upward movement toward the $200 mark, up another 2.24% in the past 24-hour period (making it up 4.32% in the past 7-day period). What may have helped the Bitcoin price yesterday (September 16) is the announcement by crypto payment processor BitPay that in the near future it will be possible for its customers to accept Ether payments for purchases of goods and services. Also, the BitPay wallet will support Ether.

Ethereum co-founder Vitalik Buterin had this to say about the news:

"It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.

BCH-USD

BCH-USD 24 Hour Chart - 17 Sep 2019.png

On Monday (September 16), Bitcoin.com announced that it had entered into a strategic partnership with Taiwanese smartphone manufacturer HTC, as a result of which the Bitcoin.com wallet will come preinstalled on HTC's current and upcoming blockchain phones (Exodus 1 and Exodus 1s):

BNB-USD

BNB-USD 24 Hour Chart - 17 Sep 2019.png

Although BNB is currently in the red, this may change during the next several hours once all of the six mini announcements that Binance plans to make today have come out:

The first of the six announcements that Binance CEO Changpeng Zhao (aka "CZ") referred to is the addition of support for Cosmos (ATOM) to Binance's Margin Trading platform:

XMD-USD

XMR-USD 24 Hour Chart - 17 Sep 2019.png

OKEx Korea announced on Monday (September 16) that it intends to delist all five privacy coins it is currently supporting, i.e. XMR, DASH, ZEC, ZEN, and SBTC, due to concerns that these cryptocurrencies do not allow it to implement FATF's so-called "travel rule". 10 October 2019 is the date on which transaction (i.e. trading) support ends.

DASH-USD

DASH-USD 24 Hour Chart - 17 Sep 2019.png

Since OKEx Korea's delisting announcement mentioned DASH, you would expect it to be down today, just like XMR. However, it is not, and that is very likely due to the fact that today (September 17) is the day that trading in DASH is expected to start on Coinbase Pro on/after 09:00 PST (16:00 UTC) provided that there is sufficient liquidity.

Featured Image Court: Photo via Pixabay.com