TL;DR
- Significant increase in Bitcoin volatility compared to Ether.
- Bitcoin’s 30-day historical volatility index reached nearly 60%, surpassing Ether by almost 10 percentage points, marking the largest difference in at least a year.
- The approval of Bitcoin ETFs by the SEC and the upcoming Halving scheduled for April 21 have contributed to market volatility.
There has been a significant increase in Bitcoin’s volatility compared to Ether recently, sparking considerable interest in the financial community. Investors are seeking to anticipate market instability.
Bitcoin, the leading cryptocurrency in terms of market value and trading volume, is usually considered a relatively stable asset compared to other altcoins, such as meme coins, known for their explosive potential both upward and downward. However, in recent weeks, various factors have contributed to greater volatility in BTC compared to Ether.
#BTC's 30-day realized volatility hit 60% last week and has been surpassing #ETH's since February. 📊
👉The gap between the two is now at a multi-year high. pic.twitter.com/rL7FJxKuWf
— Kaiko (@KaikoData) March 29, 2024
Bitcoin’s 30-day historical volatility index has reached almost 60%, surpassing Ether’s by nearly 10 percentage points, marking the largest difference in at least a year, according to data compiled by Kaiko.
The Halving and ETFs: Keys Behind Bitcoin Volatility
Several factors can be attributed to this unstable behavior. On one hand, the recent approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has led to a significant increase in trading activity and fund inflows into the BTC market. This has heightened volatility in Bitcoin’s price as investors adjust their positions in response to ETF developments.
Additionally, the upcoming Halving, scheduled for April 21, has also been a key factor in market volatility. This event, occurring roughly every four years, will halve the BTC miners’ reward, potentially impacting the cryptocurrency’s supply and demand.
While some investors expect a price increase in Bitcoin after the halving, others fear a market pullback once the initial euphoria fades. In this context, investors are trying to anticipate the outcome, contributing to instability in BTC and consequently, in the rest of the crypto market.
This trend is likely to continue as we approach the halving. Only time will tell the final results and the true impact of the volatility. We will be monitoring any developments closely.
