According to data from the crypto financial services company Galaxy, a rare shift has occurred in the cryptocurrency market: Bitcoin’s volatility has fallen below the S&P 500 and Nasdaq indices for the first time.
Historically, Bitcoin has always been known for its high volatility, with its price often fluctuating sharply due to market sentiment, regulatory policies or macroeconomic factors. In contrast, the S&P 500 and Nasdaq indices, which represent traditional financial markets, usually perform more stably. But recent data have broken this inherent perception.
Galaxy Analysis points out that the 30-day annualized volatility of Bitcoin has significantly declined and is currently lower than that of the S&P 500 and Nasdaq indices. There may be multiple reasons behind this situation. On the one hand, as the Bitcoin market gradually matures, the influx of a large number of institutional investors has brought a more stable flow of funds to the market, reducing irrational trading behaviors. On the other hand, the regulatory environment for the cryptocurrency industry has gradually become clear recently, market uncertainty has decreased, and investor confidence has been boosted.
Furthermore, the macroeconomic environment is also playing a role. Recently, global economic data has fluctuated, and traditional financial markets are facing many uncertainties. However, as an emerging asset, Bitcoin’s correlation with traditional markets has weakened, and it has instead performed more stably.
This change has attracted widespread attention from the market. For investors, the reduction in Bitcoin’s volatility has changed its risk attribute, which may attract more investors with a lower risk appetite to enter the market. For the financial market, the reversal of Bitcoin’s volatility compared to traditional indices indicates that the cryptocurrency market is undergoing a structural transformation, which may have a profound impact on future asset allocation strategies. At present, all market participants are closely watching whether this trend can continue and how it will develop in the future.
Related topic:
- Tether-Backed Twenty One Capital Purchases $458.7M in Bitcoin
- India Slaps Back Amid US-China Trade Deal: Trump’s Tariffs Spark Tensions
- Tether-Backed Twenty One Capital Purchases $458.7M in Bitcoin
