Recent data indicates a sharp decline in Bitcoin's volatility, making it increasingly resemble traditional assets.
Bitcoin Volatility and the Market
Market analysts note a decrease in Bitcoin's volatility. According to a chart released by Eric Balchunas from Bloomberg, the volatility of the iShares Bitcoin Trust (IBIT) is now just 1.28 times that of the S&P 500, significantly lower than the 5.7 multiple seen last year.
Reputation as a Safe Asset
Binance Research highlights Bitcoin's growing reputation as a hedge against global crises. The report mentions that Bitcoin has averaged a 37% gain in the two months following major geopolitical flare-ups since 2020.
Future of Bitcoin
Despite a recent bounce after global tensions, analysts remain cautious about whether Bitcoin's newfound calm can lead to lasting strength in the future.
Overall, Bitcoin's volatility continues to decline, which may indicate its evolution into a more stable asset, although the future remains uncertain.
