Bitcoin (BTC) 20-Day Volatility Lower Than Netflix, Dominos And Amazon

Bitcoin's 20-day historical volatility is now lower than some of Wall Street's finest stocks like Amazon, Netflix, NVIDIA, and Dominos.


Bitcoin’s 20-day historical volatility is now lower than some of Wall Street’s finest stocks like Amazon, Netflix, NVIDIA, and Dominos.

As recently reported, Bitcoin’s price volatility recently hit a 2 year-low and Bitcoin’s price range in September 2018 has been the tightest since July 2017.

For day traders, cryptocurrency’s price volatility is welcome, especially when it’s in a continuous upward loop and all they need is to make some quick bucks.

For those not into crypto, or those looking for “a reason” not to buy say Bitcoin (BTC), volatility is one of the biggest dissuading factors.

That has, however, gradually changed in the last one month, with the leading crypto asset becoming less and less volatile. Its volatility has even dropped below some of Wall Street’s most popular stocks

Data shows that Bitcoin’s 20-day historical volatility (HV) has dropped significantly, currently sitting at around 31.5%. The percentage is lower than many of the so-called less volatile assets.

Bitcoin (BTC) 20-Day Volatility Lower Than Netflix, Dominos And Amazon
Source: CBOE Options Institute senior instructor Kevin Davitt

Tech giants seeing lots of volatility

Of those traditional stocks with higher volatility indexes than Bitcoin, you would be surprised to find behemoths like e-commerce giant Amazon, iPhone maker Apple, streaming giant Netflix, and Nvidia, one of the leading chipset makers.

Amazon, Nvidia over 40%

Amazon has its 20-day HV at 35 percent, Nvidia has seen its volatility level hit 40 percent, while that of Netflix has shot up to about 52 percent.

Bitcoin on par with Apple

In comparison, Davitt’s data shows that Bitcoin’s daily price change is not far off that of Wall Street’s top stock Apple (AAPL). As per the analysis, Apple has its 20-day historical volatility at 29.3 percent.

That is not too far off that of Bitcoin standing at 31 percent and especially given that Apple is one of the world’s most valuable companies. The AAPL stock has a market cap that is nearly five times bigger than that of Bitcoin at $1 trillion.

Low standard deviation for Bitcoin

Bitcoin’s current one standard deviation revolves around $475, or about +/- 7.3 percent, wrote Cboe’s The Options Institute instructor Kevin Davitt. But that has dropped from about 42 percent seen at the beginning of the year when the top coin’s 20-day HV hit 140 percent.

Tilary and huge volatility in cannabis stocks

It’s not just that Bitcoin’s volatility has gone down. As Davitt notes in the report, Bitcoin at its worst price swings is still significantly stable compared to the price of Tilray, a Vancouver based cannabis producer.

The company’s stock has become synonymous with the highest pot stock volatility since going public in July. It currently has a staggering 20-day HV of 219 percent.

Maturing crypto market

Cboe holds the view that a maturing crypto market could be the reason Bitcoin’s HV has seen some decline. Davitt speculates that this could be an indication of there being a “structural shift” within the crypto ecosystem, as the top coin continues to post better 20-day historical volatility.

However, the analyst has urged cautioned saying that it’s still “too early” to look at the improving HV and think that this scenario is the “new normal.”

Bitcoin currently exchanges hands at $6,465 against the US dollar and has lost about 2.2 percent in the last seven days. The crypto has a market cap of $112 billion.

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