CBOE: BTC is less volatile than the shares of the largest companies with Wall Street


The 20-day indicator of the volatility of bitcoin was lower than the volatility of the largest and most popular with Wall Street shares, including the shares of Amazon, Netflix and Nvidia, show the data of Cboe Global Markets.

According to the report, the 20-day historical volatility (HV) bitcoins, which shows the rate of change of the asset price, fell to 31.5%, while the 20-day HV Amazon shares equal to 35%, Nvidia – 40%, Netflix – 52%. Currently, the bitcoin stability comparable to the stability of the company’s shares Apple (AAPL), which is considered one of the most valuable companies in the world with a market capitalization of almost $ 1 trillion, 20-day HV Apple is equal to 29.3%.

Senior instructor the Options Institute at Cboe Kevin Davitt explained:

“The standard deviation of the price of bitcoins is now about $ 457, which corresponds to +/- 7,3% (475/6500). Compare this to the beginning of the year (mid-January), when the price of bitcoin was about $ 11,000. Then the standard deviation amounted to 4640 dollars or +/-42%”

When bitcoin reached a peak in December 2017-year, 20-day historical volatility rate reached 140%, but even these figures are not large in comparison with the shares of the canadian company Tilray, which during the IPO in July jumped from 17 to 300 dollars, and 20-day HV of which is now 219%.

Devitt also believes that the decline in the 20-day historical volatility can be a good sign for bitcoin:

“Perhaps we are witnessing the maturation of the market. It is still too early to announce the establishment of “new norms”, but steady spread over the last few weeks may indicate structural changes. Only time will tell.”

Price of key cryptocurrencies are still far from their peak values and shares for the price of 6465 dollars for bitcoin. Despite the fact that the situation may seem negative for cryptocurrency investors, it has a positive side. According to experts, the stagnation of prices for the cryptocurrency contributes to the growth of entrepreneurial activities. In the context of falling prices, investors simply switched from bitcoin on cryptosphere startups.

In 2018, the year of the bitcoin has shown itself far more stable in terms of cryptocurrency. Also in the beginning of this month Chainalysis study showed that bitcoin whales do not affect the volatility of prices in the market of digital gold.

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