As can be seen from the price movements, the volatility of Bitcoin (BTC) has significantly decreased in recent years. Bloomberg’s experienced macro strategist Mike McGlone warned that volatility could further decrease. McGlone stated that there is enough room for volatility to move down and added that this decrease in volatility has led to a decrease in the relative risk of the crypto king. However, comparing the volatility of gold, a traditional store of value, with the volatility of Bitcoin, the strategist stated that the volatility of the crypto king is still very high.
Mike McGlone, a senior macro strategist at Bloomberg Intelligence, shared noteworthy data on August 21st regarding Bitcoin’s volatility rapidly approaching gold’s volatility. According to McGlone, Bitcoin’s volatility continues to decrease compared to gold and is now at lower levels than most traditional assets. The strategist emphasized that the decrease in Bitcoin’s volatility also reduces its relative risk and makes it a less risky asset:
The graph, which is about 3 times that of gold, shows that Bitcoin’s 90-day volatility is still relatively high compared to a traditional store of value, but it is far from the peak level that was about 12 times the current levels in 2018.
According to the data, the days of large movements in BTC’s price are now behind us. Therefore, as a result of the significant decrease in Bitcoin’s volatility, it is not very likely to see a surprise price surge or a rapid movement to all-time highs at the moment.
Bitcoin is increasingly being embraced in the traditional finance sector, especially following the spot Bitcoin ETF application made by BlackRock, the world’s largest asset management company, to the U.S. Securities and Exchange Commission (SEC). Futures, cash and carry arbitrage, and exchange-traded funds are prominent characteristics of the crypto king’s maturation process.
Macro factors and a weak technical chart outlook continue to put pressure on Bitcoin’s price. The Federal Reserve’s plan to continue with interest rate hikes and the U.S. dollar index rising to the 103.50 level caused BTC’s price to fall last week under selling pressure.
According to experienced cryptocurrency analyst Ali Martinez, whenever BTC has fallen below the 200-day SMA in the past 10 years, it has not rebounded without touching the Realized Price level. Once again, the Realized Price level for Bitcoin, which has fallen below the 200-day SMA, is currently around $20,350. This indicates a significant risk of further decline in price.
Current data shows that the crypto king traded just above $26,000 with a 0.25% decrease in the last 24 hours. The trading volume is $9.65 billion, a 0.5% decrease in the last 24 hours.