Is Crypto really that volatile anymore...?

in #economics23 hours ago

I had to yet another one of those tedious exchange questionnaires today to allow me to trade, which consisted of pointless and patronising multi-choice questions, many of which required me to select the option which stated crypto was a risky, volatile asset.

But volatility is all relative...

Obviously BTC and every other crypto jumps around a lot, but a lot of this is very minor peaks and troughs amidst clear down, up or sideways trends...

And if you freeze frame and compare BTC amidst other varied assets I mean look at this below, from a few days ago.......

Screenshot 2024-12-15 at 08.20.40.png

(https://8marketcap.com/)

These are figures over the last seven days.

  • BTC at number 8 by market cap goes Up, down, up, down up.
  • Gold at number 1 goes down up down sideways, down, up.
  • Nvidia at number 3 goes up, mostly sideways, down, up, down.

I mean, I could go on, the only two you might call stable there are Vanguard and Apple.

Bitcoin appears no more volatile to me than most other top 10 assets in the T10.

Other cryptos...

Then the seven day trend for the rest of the top MC cryptos, the trend is basically down up and then along/ down.

Screenshot 2024-12-15 at 15.53.44.png

I mean YES there will be peaks and troughs but a lot of the above just follow BTC generally, we all know this!

It's just the occasional coin that pumps like batshit, and those get all the headlines, but most of the time these days everything is pretty stable....

Longer term - good volatility...?

Now OFC, compared to gold BTC has been A LOT more volatile. over the last five years, but then gold has increased in value by around 50% in that time, while BTC has seen a 5 times increase, so that's a 10 times relative gain.....

All that opportunity to make money along the way!

More stability ahead....???

Of course this waits to be seen, but I do wonder if now BTC is 'up there' in terms of a major marketcap player, and gaining more credibility, maybe it'll be just a tad more stable, I mean we haven't seen that much volatility of late...

Screenshot 2024-12-16 at 19.20.36.png

Probably famous last words!

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Some people predict crazy prices for $BTC, but it may just be wishful thinking. Mind you, it's come a long way. As I said the other day, there's a lot of junk in the crypto charts that doesn't help its image.

Let's see what 2025 brings...

I don't expect such volatility as before till Trump takes over the position. (Not a financial advise)

Oh yes, Crypto is still volatile!!

One swallow does not a summer make...

Give it time, the swings will come. At some stage over the next 12 to 24 months the wheels will entirely come off and the cycle will start again..

That's my take anyway..

I think crypto is definitely "volatile" but so are biotech stocks and small to mid-cap tech stocks. Comparing crypto to to huge old-market company stocks is not really apples-to-apples.

Crypto's volatility reputation is more likely rooted in the insane ups and downs of memecoins and such... but the comparable there might be what was called off-exchange "pink sheet" stocks which also could go up 500% in a week and then lose 90% of their value the next week.

Yes fair point, one does have to watch what one compares these things too. Meme coins! I really hope they are not the theme of 2025.

perhaps volatile is too harsh a word, maybe high risk venture is more appropriate. My IFA managed investments which are all in high risk status, over the past 3 years have been up and down like a hookers pants, my quarterly reports have been showing big losses and then recovering with big gains, as these investments are long term and have been for well over 10 years I am still showing healthy profits of 10% year on year. So it is all a game, but you need to be in it to win it.

They sound quite like BTC, so yes volatility is maybe a harsh word!

Well I saw hive at $0.40+ and started a power down for some Christmas money and it is now $0.26 so .... yeah, pretty volitile :)

That said, to get it into £ means several sells and conversions so it is volitile all the way down ;)