The leading cryptocurrencies Bitcoin and Ethereum, known for their high ups and downs, seem to be taking a break in the summer. Now, even surpassing oil, these digital assets have become less volatile.
According to the new data from Kaiko research, the 90-day volatility indices for Bitcoin (BTC) and Ethereum (ETH) have reached multi-year low levels, decreasing by 35% and 37% respectively. This has caused the volatility of the largest cryptocurrencies to fall below the volatility of oil, which is at 41%.
Market volatility is the frequency and magnitude of price movements, either up or down. It is calculated based on how much a price has changed over a certain period of time – a higher percentage represents higher volatility, while the opposite represents lower volatility.
Historically, cryptocurrencies have been seen to be more volatile than oil, with greater frequency and magnitude of price movements, leading Kaiko analyst Dessislava Ianeva to describe the current market as “unusual.” However, according to the Kaiko analyst, this volatility has significantly decreased because “Bitcoin is continuing to mature as an asset.”
