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Skew Analysts: Bitcoin (BTC) Less Volatile Than It Seems

News
Wed, 05/27/2020 - 10:18
Vladislav Sopov
High volatility is the main point of every anti-Bitcoin narrative. But here is data from top analysts that proves this argument is a bit outdated
Skew Analysts: Bitcoin (BTC) Less Volatile Than It Seems
Cover image via stock.adobe.com
Contents

Analysts from the Skew research team, which studies cryptocurrency derivatives trading, has unveiled surprising statistics. They compared Bitcoin (BTC) and crude oil price volatility for an annual profile.

As volatile as Bitcoin (BTC)

According to their calculations, in a majority of 24H frameworks year-to-date, the Bitcoin (BTC) price moved less than 2%. Such a small absolute daily return has been demonstrated by the king coin 53% of the time.

Comparably, the crude oil price experienced insignificant volatility 61% of the time, which is only 8% higher than that of Bitcoin (BTC).

Additionally, the vast majority of days of high-volatile for Bitcoin (BTC) were in only three periods YTD. The price skyrocketed during the bull run of Summer, 2019 and the early days of Q4, 2019 due to the 'Xi Spike'.

Also, the Black Thursday tragedy and its aftermath in March 2020 contributed significantly to the calculations of Bitcoin (BTC) volatility.

Decoupling or correlation?

During the ongoing market recession, many economists, traders and analysts have attempted to figure out the laws of correlation between Bitcoin (BTC) and the prices of classic assets (i.e. stocks, raw materials, metals and others).

The most accurate explanation has been given by Charles Edwards of Capriole Investments. According to his 'Amygdala Overdrive Relationship' law, Bitcoin (BTC) is correlated with assets only in times of big fear and big greed:

When markets are in Extreme Greed: investors are attracted to risky assets and Bitcoin performance correlates with equities, or when markets are in Extreme Fear: investors dump risky assets and Bitcoin performance correlates with equities.

His take is shared with the legendary John Bollinger who suggested that all assets are highly correlated during 'Black Swan' events

VanEck's Gabor Gurbacs has also highlighted that Bitcoin (BTC) demonstrated an unprecedented correlation with Gold (XAU) during the initial stage of the ongoing recession.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)