Bitcoin is less volatile than Amazon’s stock
Bitcoin is less volatile than Amazon’s stock

Bitcoin is less volatile than Amazon’s stock

By Adrian Zmudzinski - 23 Oct 2018

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The volatility of the oldest cryptocurrency, bitcoin, results lower than Amazon’s stock. This is what emerged from an analysis published by MarketWatch.  

“Day traders looking to make a quick buck buying and selling bitcoin might be better off switching lanes as volatility in the world’s largest digital currency continues to decline.”

MarketWatch analysis, in fact, reports that stocks of companies like Amazon, Nvidia, Netflix all have reported higher volatility in the 20-day historical volatility study.

What’s more, according to the analyst Bitcoin’s volatility is “creeping towards that of tech-behemoth Apple Inc.”

Kevin Davitt, senior instructor at The Options Institute at Cboe, wrote:

“A one standard deviation move for bitcoin at present is about $475. That works out to +/- 7.3% (475/6500). Compare that to earlier this year (mid-January) when bitcoin was around $11,000. Back then the standard deviation measured $4640 or +/- 42%”

Bitcoin isn’t the most volatile anymore

Bitcoin’s historical volatility reached 140% but that — as pointed out by MarketWatch — is low when compared to the stocks of some cannabis producers. The stock of Tilray Inc., a Vancouver-based company we previously reported about, currently has a 219% 20-day historical volatility.

While day-traders aren’t happy with the volatility of Bitcoin becoming lower, price stability can probably help Bitcoin adoption substantially. Volatility is one of the main reasons why Bitcoin’s usage as a currency has been deemed impractical by many. Moreover, this is probably a sign of progress on this front and it’s nothing more than a step in the right direction. Davitt commented:

“Perhaps we are witnessing the maturation of a market. It’s far too early to declare this the “new normal” but the persistent range over the last few weeks may be hinting at a structural shift. Time will tell.”

Adrian Zmudzinski

Adrian is passionate about technology and Information Technology (IT). Adrian specialized in the analysis of tokens, the blockchain technology, and cryptocurrencies. His interest in Bitcoin dates back to 2009 and it rapidly transformed into a more general interest of the still arising cryptocurrency industry. His analyses are concerned mostly by the technological potential underlying the analyzed token.

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