Bitcoin is now less volatile than stocks
Bitcoin volatility has experienced a sharp drop, while the S&P 500 continues to be highly volatile.
The main reason behind this extraordinary situation is the nature of the S&P 500. Being a bellwether index, it is impacted by a very mixed results of different stocks. Top stocks like Amazon and Tesla remain high in value, while the positions of other stocks are still uncertain.
Bitcoin, meanwhile, is still considered to be one of the ways to protect the funds from the inflation. Another factor, that is strengthening the cryptocurrency position, is the unwillingness of many holders to participate in the trade. Traders prefer to reserve their coins and wait for further updates.
Overall, BTC is still much more volatile than stocks in general. However, some experts believe, that Bitcoin and Ethereum might still be a safer bet while the economy is only beginning to prepare for recovery.