The NASDAQ in the third quarter was the volatility of bitcoin.

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The NASDAQ in the third quarter was the volatility of bitcoin.

The third quarter of 2018 was marked by a curious trend — rates of bitcoin and cryptocurrency in General was more stable than conventional securities.

To call cryptocurrency an oasis of calm, of course, too early, but the facts show that at least in July-September, she was such to investors.

The appropriate conclusion shared by economist Michael Spencer on his blog.

According to him, the NASDAQ Composite Index largely depends on the behavior of stocks of companies in high-tech industries. Considering how varied their course during the third quarter, the index could not respond to these fluctuations.

“What irony! Banks have long believed bitcoin tool for fraudsters due to its volatility, however, as of September 5, its rate was more stable than the rate of traditional assets, the wall street — said the expert. Good old Fiat markets to their sensitivity to rising interest rates, manipulation of the US Federal reserve, trade wars, tariffs… even Italy and Brexit contributed”.

Bitcoin behaves surprisingly calm, but the NASDAQ Comрosite, it seems, by mid-autumn lost all its growth from the beginning of the year.

Even in the last week, bitcoin rose on the week by 1%, while the Dow Jones declined by 3%. “To the October 24, 20-day bitcoin volatility index fell to 31.5%, while Amazon and Netflix its value was 35% and 52%,” — said the expert.

In their constructions Spencer goes further, assuming that the start-up of projects Bakkt and Fidelity of Digital Assets may be the beginning of the end of wall Street, which of course now seems a very brave assumption. Before making such predictions, it would be good at least had to wait for their launch — so far we only know that Bakkt moved the starting date from November to December 12th.

However, suspicious stability of bitcoin, including last week — a phenomenon that has already spawned several explanations.

The most popular of these are the pessimistic variant (loss of interest of investors and the gradual fade out of the market), and optimistic — stabilization and accession to the market in a phase of maturity in connection with the outflow of speculative capital to more volatile assets.


Dmitry Gorulko

In journalism since 2000. Worked in different Ukrainian and European media, was a freelance author of several business media outlets. Translator, reporter, columnist, editor and Deputy editor of the news. Professional interests – from energy to business intelligence, and more recently – and Finance. Have worked long and hard with the news, I think this genre is the most interesting, dynamic and relevant. Informational website with no news at all – wasted money in my opinion.

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