For the last four months, the Dow Jones has been more volatile than Bitcoin, typically known for its volatility.
- Unlike the Dow Jones Industrial Average, Bitcoin has been more stable for the past few months, showing how cryptocurrency is maturing and potentially leading to increased stability.
- Since late May, Bitcoin has hovered between $19,000 and $23,000.
- The Dow has had three increases of at least 10% and two decreases of at least 10% over that time period.
- Bitcoin has matched trading patterns with traditional stock in the past few months as both contend with high inflation and rising interest rates, but that appears to be changing.
Why it’s news
Bitcoin has been a traditionally volatile asset. The increased stability is a sign that the cryptocurrency is reaching maturity, potentially leading to long-term stability and the cryptocurrency trading like a traditional asset.
For the past four months, Bitcoin has remained around $20,000 following a low in June.
However, not every expert sees Bitcoin’s current relative stability as a signal of continuing stability.
The Bollinger study, a popular gauge of market volatility, shows a narrow gap in the Bollinger bandwidth. The bandwidth measures the highest and lowest bands in the study.
Previously, when the bandwidth had been narrow, Bitcoin swung dramatically. The Bollinger bandwidth is currently at its narrowest since 2020.
Inflation data from the U.S. that is expected to be released Thursday could potentially have a significant effect on Bitcoin’s current standings.
At the time of publication, Bitcoin remains relatively unchanged at $19,194.