Bitcoin’s volatility has fallen below that of the Nasdaq and the S&P 500, according to crypto data provider Kaiko. Compared to equity markets, cryptocurrency markets have become less reactive to volatile macro events, including high inflation, an appreciating dollar, rising interest rates, ongoing war, and the energy crisis, the firm explained.

‘Bitcoin Volatility Is at Multi-Year Lows’

Bitcoin has become less volatile than both the Nasdaq and the S&P 500, according to cryptocurrency data provider Kaiko, CNBC reported. The crypto data firm explained Friday that BTC’s 20-day rolling volatility has dropped below that of the two stock indexes for the first time since 2020.

Clara Medalie, Kaiko’s head of research, told the news outlet:

Bitcoin volatility is at multi-year lows while equity volatility is only at its lowest level since July.

“Equity markets have certainly been volatile over the past few months due to high inflation, an appreciating dollar, rising interest rates, and the ongoing war and energy crisis,” she continued.

Analysts expect the Federal Reserve to hike interest rates by 75 basis points for a fourth straight meeting in November. However, San Francisco Federal Reserve President Mary Daly said Friday that it is time to start considering slowing interest rate hikes.

Medalie further detailed:

The data suggests that cryptocurrency markets are less reactive to volatile macro events than they were earlier on in the year, whereas equity markets have remained highly sensitive.

In addition, Kaiko said Monday that “The gap between BTC and equities’ 30-day and 90-day volatilities has also been shrinking since the second half of September despite BTC’s heightened sensitivity to macroeconomic data releases.” The data firm elaborated:

BTC has shown resilience to a strengthening USD and surging Treasury yields, trading in a narrow range.

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