Bitcoin’s volatility is approaching that of gold

Mike McGlone, senior macro strategist at Bloomberg Intelligence, says the volatility of bitcoin (BTC) is approaching that of gold. According to him, the 90-day volatility of the major crypto is around 3 times that of gold. A high figure compared to traditional assets, but lower than the 2018 high of around 12 times.

Bitcoin (BTC), towards better price stability

As McGlone demonstrates, the decline in bitcoin (BTC) volatility heralds a major turning point in crypto history. This suggests that prices are less likely to undergo large upward or downward movements.

Therefore, it can make the asset more attractive to investors who are looking for a less risky asset. In reality, such progress is due to several factors. These include the growing adoption of bitcoin by the traditional financial sector, increased market liquidity, and improved regulation.

However, the decline in volatility does not means not that the price of BTC can no longer experience strong fluctuations. There are still factors that can put pressure on prices. These include the imminent rise in interest rates and the depreciation of the US dollar.

Short term outlook

The outlook for the mother of cryptos is uncertain in the near term. On the one hand, the negative macroeconomic factors may lead to a further decline in prices. On the other hand, the growing adoption by the traditional financial sector could support the costs.

In addition, the price of bitcoin (BTC) could fall further before rebounding. However, it has already increased by 0.5% in the last 24 hours and is trading at $26,090. The volume of transactions, however, has decreased by 10% in the last 24 hours.

The volatility of bitcoin (BTC) continues to decline, making it less risky. However, its price is currently under pressure due to macroeconomic factors. It is too early to tell if the price of BTC will rebound, but this phenomenon is a positive sign for the future of cryptocurrency.