• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision

Bitcoin Currently More Stable Than Gold, DXY, Nasdaq, Here’s What Could Happen Next

Hououin Kyouma by Hououin Kyouma
2 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Data shows Bitcoin has been more stable than gold, DXY, Nasdaq, and S&P 500 recently, here’s what history says could follow next.

Bitcoin 5-Day Volatility Has Fallen Below That Of Gold, DXY, Nasdaq, And S&P 500

According to the latest weekly report from Arcane Research, BTC has been more stable than these assets for a record duration already this year. The “volatility” is an indicator that measures the deviation of daily returns from the average for Bitcoin.

When the value of this metric is high, it means the crypto has been registering a higher amount of returns compared to the mean, suggesting that the coin has involved a higher trading risk recently. On the other hand, low values imply there haven’t been any significant fluctuations in the price in recent days, showing that the market has been stale.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Now, here is a chart that shows the trend in the 30-day volatility for Bitcoin over the course of its entire history:

Bitcoin Volatility

The value of the metric seems to have plunged in recent days | Source: Arcane Research's Ahead of the Curve - January 10

As shown in the above graph, the Bitcoin 30-day volatility is at very low levels currently as the price has been trading mostly sideways in recent weeks. The current values of the indicator are the lowest since 2020, but they are still higher than some of the lows during previous bear markets.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Related Reading: Shiba Inu Bullish Signal: Whale Withdraws $34.7M In SHIB From Binance

One consequence of this recent flat movement has been that BTC has become more stable than assets like gold, DXY, Nasdaq, and S&P 500. To compare these assets’ volatilities against each other, the report has made use of the 5-day volatility (and not the 30-day or 7-day one).

The below table highlights the periods in BTC’s lifetime when the crypto’s 5-day volatility has been simultaneously lower than all these traditional assets.

Bitcoin More Stable Than Stocks

Looks like such occurrences have been a very rare event | Source: Arcane Research's Ahead of the Curve - January 10

As the table displays, there have only ever been a handful of instances where the Bitcoin 5-day volatility has been lower than that of gold, DXY, Nasdaq, and S&P 500 at the same time. The report labels such occurrences as “relative volatility compression” periods.

It seems like, before the latest streak, the highest duration of this trend was just 2 consecutive days. This means that the current relative volatility compression period is already the longest ever in the coin’s history.

Related Reading: Bitcoin Exchange Inflows Fall To 2020 Levels As Activity Remains Low

Another interesting fact in the table is the total returns in Bitcoin that were observed in the 30-day period following the first date of the volatility compression in each of these instances. Besides one occurrence (September 29, 2022), all other volatility compression periods were succeeded by the price becoming highly volatile and registering large returns.

It now remains to be seen whether a similar pattern will follow this time as well, with Bitcoin experiencing a wild next 30 days after this seriously flat price action.

BTC Price

At the time of writing, Bitcoin is trading around $17,400, up 3% in the last week.

Bitcoin Price Chart

BTC has surged in the last few days | Source: BTCUSD on TradingView
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research
Tags: bitcoinBitcoin 5-Day VolatilityBitcoin volatilitybtcbtcusddxygoldNASDAQS&P 500
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Hououin Kyouma

Hououin Kyouma

Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university.

Related Posts

Bitcoin

Bitcoin Price Action Mirrors Q1 2021, Volatility Ahead?

7 hours ago
Bitcoin

Bitcoin Coinbase Premium Continues To Decline, Buying Pressure Ending?

10 hours ago
Bitcoin

Quant Explains How Bitcoin ‘ESR’ Can Act As Leading Indicator For Price

14 hours ago
Bitcoin US Government

Bitcoin Will Be Stronger Despite Attacks From the US, Says HRF’s Executive

15 hours ago
Bitcoin bull case

3 Reasons To Remain Bullish On Bitcoin In Coming Months

16 hours ago
Bitcoin

Bitcoin Liquidity Crisis Gets Worse, Here’s What It Means For Price

19 hours ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Whatever Happened To Bitcoin Cash? – Learn Why Avorak AI and Other AI Crypto Are Surging

March 24, 2023

Avalanche Price Prediction: are AVAX and TOADS ready to 10X?

March 24, 2023

Litecoin (LTC) and Dogecoin (DOGE) Drowning in Controversy While TMS Network (TMSN) Steals the Show

March 24, 2023

The Best Altcoins To Get In Early 2023: TMS Network (TMSN), TRON (TRX) and Mask Network (MASK)

March 24, 2023

The Web3.Conference will gather Web3 builders & creators this May in Amsterdam

March 24, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.