Bitcoin Volatility Flips Wall St: What Does it Mean for BTC?

• Bitcoin’s 5-day volatility index has flipped below the S&P 500, tech stocks, and gold.
• This “volatility inversion” coincides with Bitcoin and Wall St’s correlation at a 2-year low.
• The sudden spike in stock volatility coinciding with Bitcoin’s cool-down month is what caused the odd flip.

Weird Signal: Bitcoin 5-Day Volatility Inversion With Wall St

Bitcoin’s 5-day volatility index has recently flipped below the S&P 500, tech stocks, and gold. This “volatility inversion” coincides with Bitcoin and Wall St’s correlation at a 2-year low.

What Is Volatility Inversion?

Volatility inversion is when certain assets have different levels of risk than usual. This means that one asset may be more or less volatile than another asset for a period of time.

What Caused The Odd Flip?

The sudden spike in stock volatility coinciding with Bitcoin’s cool-down month is what caused the odd flip. Daily volatility in Bitcoin price changes fell markedly from Thursday, July 20, through Saturday, July 22. Meanwhile, stocks hit some turbulence causing VIX to increase 18% for the month and 25% over the 5-day window.

Implications For BTC Price

The unusual price stability could mean different things for the BTC price depending on how long it lasts or if any particular trends emerge from it. However, don’t expect to use bitcoin to buy your cup of coffee just yet as this is still an early signal that needs to be monitored closely before any conclusions can be drawn about its implications for BTC prices.

Conclusion

The recent volatility inversion between Bitcoin and stocks on their hands is an unusual signal that needs to be monitored closely before any conclusions can be drawn about its implications for BTC prices.

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