Yes that’s right: Bitcoin and Ethereum are currently LESS volatile than oil.
☝️ The closer a line gets to zero on the 90D axis, the less volatile it is.
That’s neat, but what does this emphasize?
Other than an obvious split between Chevy and his uncle? Not very much yet.
While this data is very exciting in a vacuum as it paints Bitcoin and Ethereum as stable and less risky, it doesn’t prove too much in the long run.
Crypto trading tends to level off in:
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Summer months
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Bear markets
Two things we’re going through right now.
And that while oil navigates a bumpy road:
The invasion of Ukraine has imposed economic sanctions on Russia (which produces 13% of the world’s oil), increasing volatility since February last year.
While China’s much-delayed post-covid reopening (from January to April this year) did not boost oil demand as much as expected.
(And uncertainty generally leads to volatility).
Easy said:
Oil had to work last summer while crypto was on vacation.
Is this pattern likely to repeat itself? Probably not.
But it will shut Steve up during the holiday season – and that’s enough for us.
UPDATE: To get. This.
About an hour after I wrote this, Bitcoin and Ethereum prices fell off a cliff.