Bitcoin is volatile? Check oil then

Bitcoin Is Volatile? Check Oil ThenBy The OFC Academy on The CapitalSince oil futures crashed earlier this week — some hitting negative prices for the first time ever — the crypto world has been enjoying the fact that bitcoin suddenly appeared to be a relatively stable asset.Markets were shocked when the May futures contract on the West Texas Intermediate (WTI) crude, the main oil benchmark for the U.S., crashed Monday on fears arising from massive oversupply due to the effects of the coronavirus measures.A day later, the June contract tumbled more than 43 percent to a 21-year low of $11.57 a barrel. Bitcoin, though, barely flinched and held within its recent trading range between $6,400 and $7,400.But, according to data from CryptoCompare, bitcoin has outshone oil for far longer than just a few days when it comes to price stability. In fact, “black gold” first started showing greater volatility — that is, the degree of fluctuation in the price of an asset — in early March, and has largely remained higher in April.CryptoCompare graphed 14-day rolling volatilities for oil, bitcoin, gold, and the S&P 500. Volatility above 5 percent for 14 days translates to 25 percent or more on an annualized basis. The more volatile, the bigger the percentage move, the riskier the asset (regardless of the direction).Bitcoin is volatile? Check oil then was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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Author: The OFC Academy

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