Bitcoin’s 20-day Rolling Volatility Falls Below Nasdaq and S&P 500 indexes for the First Time Since 2020

Bitcoin Price Decrease

Over the past few months, the price of the cryptocurrency giant has held its ground around the $20,000 range, signaling that its volatility period may be at an end. And although experts have predicted that volatility in the crypto market is settling, last week was proof that they may be right.

According to recent cryptocurrency data and research from Kaiko, the numbers showed that Bitcoin’s 20-day rolling volatility was below that of the Nasdaq and S&P 500 indexes in the last week. 

Bearing in mind that this hasn’t happened since the coronavirus lockdown in 2020, this is quite a feat. However, many crypto trading enthusiasts now fear the lack of volatility may be less than desirable as there are fewer and less significant price fluctuations.

Speaking on Bitcoin’s reduced volatility, The Head of Luno Exchange & Global Partnerships, Vijay Ayyar, mentioned this is a period for smart money to accumulate funds since retail trades may lose interest.

Besides, Bitcoin prices now correlate better with stocks as more institutional investors have invested in crypto.

Regarding these developments, Antoni Trenchev, the co-founder of crypto lender Nexo, commented on bitcoin stability, saying it was “a strong sign that the digital assets market has matured and is becoming less fragmented.

Either way, Bitcoin prices seem less responsive to volatile macro events compared to earlier this year.