Since last year, the outburst of interest in cryptocurrencies has subsided, but that has made Bitcoin’s recent moves look like gold.
Citing data from research firm K33, an index that tracks the 30-day volatility of the bitcoin token is currently near a 5-year low.
This rate shows that Bitcoin is more stable than the US S&P 500 and Nasdaq indexes, and even more stable than gold.
This also means that the era of sharp fluctuations in the world’s most famous cryptocurrency, often caused by extreme speculation, is over.
However, bitcoin trading volume also fell to its lowest level since November 2020, according to K33.
Institutional investors and retail traders alike shied away from the sector during 2022, which many in the cryptocurrency world saw as a “nightmare year,” when rapidly rising interest rates and the collapse of high-profile companies such as FTX sent Bitcoin’s price crashing.
While other risky assets such as stocks have improved this year, bitcoin is still trading at less than $30,000, less than half its value at the time of its historic peak of nearly $69,000 in November 2021.
Bitcoin saw activity after BlackRock, the world’s largest asset manager, said it wanted to launch an index to track the price of the cryptocurrency token.. But this interest seems to have cooled in recent weeks, bringing Bitcoin back to its stable level.
The recent stability of Bitcoin is the fulfillment of the prophecy of many market leaders who bet that the cryptocurrency would one day turn into a “safe haven” and a “store of value”, becoming the “digital gold” of the modern era.
But on the other hand, it should be noted that this happened mainly because no one cares about Bitcoin anymore.
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