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While shares of Apple and gold are presently more stable investments than Bitcoin (BTC), the leading cryptocurrency’s price is showing less volatility than the shares of tech behemoths Amazon and Meta. Bitcoin’s price volatility is currently circling a yearly rate of 32%, significantly beneath its all-time average of 71%.
Bitcoin’s Volatility
Bitcoin’s price volatility is notorious for extremely chaotic price movements when compared to traditional asset classes such as precious metals, fiat currencies, and blue-chip stocks. Yet, the world’s largest cryptocurrency by market value has been trading with a lower volatility level than even the shares of tech giants Amazon and Meta for some time.
According to The Block’s data, Bitcoin‘s annualized volatility, which tracks the standard deviation of the last 30 days’ daily percentage change in price, is currently around 32%. Considering that the asset’s average price volatility of all time is 71%, this ratio is distinctly low. Even though the leading cryptocurrency is displaying unusual low volatility during a period many investors refer to as “summer lull,” which traditionally sees lower trading volume, it is on its way to experiencing the calmest summer since 2020.
Although Bitcoin’s volatility hasn’t reached levels low enough to compete with sturdy assets like gold and Apple shares, its current level offers more stability than Meta and Amazon shares, which have volatility rates of 44% and 34% respectively. To make a comparison, the volatility rate of the Dow Jones Industrial Average currently stands at 13%.
Calm Before the Storm?
Laura Vidiella, Deputy President at crypto investment firm LedgerPrime, doesn’t believe that Bitcoin’s recent low price volatility represents a major shift. Vidiella stated, “Low volatility is a reflection of how the market views price movement at this point, considering the information the market has. However, I don’t believe it has become a new norm yet, and I expect a return of large price movements along with volatility this fall.”
If Vidiella’s prediction proves correct, it will coincide with Maelstrom founder and CEO Arthur Hayes‘ own expectation of a surge in Bitcoin’s price. Hayes remarked earlier this week, “Fireworks and a real bitcoin bull market will begin in the late third quarter and early fourth quarter of this year.”
