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Bitcoin has just exceeded the unexpected cap on the market crypto, where volatility is norm. Now it is less unstable than the S&P 500 and Nasdaq. This discrete but significant shift, revealed by Galaxy Digital, has challenges decades of perception of active considered to be too risky for traditional wallets. More than a mere technical indicator, this signal could mean a change in permanent state for the first crypto.
In short
- Bitcoin now depicts volatility lower than that of the S&P 500 and Nasdaq, according to Galaxy Digital, unprecedented situation for active as long as unstable.
- Key indicators, such as the Bloomberg and Gold Index, have seen strong variations and strengthened the perception of bitcoins as a counteractive face in the face of crises.
- The influx of institutional capital, in particular through the ETF, contributes to this stabilization, supported by careful risk management in the markets of markets.
- With 95 % of Bitcoins offer in circulation, the rarity strengthens its image of the digital value of refugees, comparable to gold in the world in the monetary composition.
Volatility increasingly comparable to traditional assets
May 12 Galaxy Digital revealed that volatility performed for ten days of Bitcoin has dropped to 43.86, which is now lower than the S&P 500 (47.29) and NASDAQ 100 (51.26). This is the situation considered exceptional for the asset considered unstable.
Analysts determine in their note:
An unusual position for crypto historically known for its disproportionate volatility.
This tilting comes when traditional markets show signs of fever, especially since the announcement of surprise 2. April Donald Trump “The day of liberation pricaire”that intensified international economic tensions.
In this context, Bitcoin not only stabilized. Over the period, it increased by 11 %, which clearly contrasts with the slow stock market indices. Several major economic indicators have in parallel with increased volatility:
- NASDAQ composite remained almost stable despite turbulence;
- The Bloomberg dollar index fell by almost 4 %;
- Gold briefly exceeded the symbolic threshold of $ 3,500 per ounce before returning by 5.75 %.
Galaxy Digital compares this situation with the situation observed in 2018-2019 during the trade between the United States and China, which is a period during which Bitcoin has already established himself as an active refuge.
This parallel emphasizes emerging dynamics. In the systemic crisis, bitcoin tends to behave like macroeconomic counteractive, posture so far reserved for raw materials such as gold.
Increasing influence of institutional actors in stabilizing bitcoins
In addition to the recent Galaxy Digital fluctuations, it identifies a deeper trend: a decrease in Bitcoin beta beta against large traces, despite correlations more than 30 days with S&P (0.62) and NASDAQ (0.64).
This change of risk profile suggests “Investors are starting to consider bitcoins less as an asset with high risk and more long -term contribution”Comments Chris Rhine, head of liquid strategies in Galaxy.
In other words, bitcoins would be outside the area of speculative assets to integrate for sustainable wallets components.
This development is also supported by the rise of institutional liquidity. Hank Huang, CEO of Kronos Research, notes that the continuous influx for the ETF and recurring strategic purchases of bitcoins “Contribute to its transformation to the digital version of gold, less correlated with action”.
According to Galaxy, this stabilization is made possible by the market “Tactically cautious but structurally constructive”Characted by disciplined lever use and low pressure on coverage strategies. With 95 % of the total bitcoin offer, mechanical lack of assets strengthens this dynamics of maturity.
This transfer could eventually redraw the landscape of international reserves. April 25 Jay Jacobs, responsible for the thematic ETF in Blackrock, noted that states gradually reduce their dollar addiction to turn to alternative assets such as gold … and now bitcoins. “Geopolitical fragmentation is demanding demand for uncorrelated assets”He explained, explicitly mentioned the growing role of bitcoins as the values of refugees next to the precious metal.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.