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

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Wed, 05/27/2020 - 10:18
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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 But here is data from top analysts that proves this argument is a bit outdated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
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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.

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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.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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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.)