BTC Gains dont Seem so Wild Compared to Stocks Like Tesla

Compared to major market indexes that breached record highs despite the Covid19 economic fallout, bitcoin appears less volatile than before. Thats according to Meltem Demirors, chief strategy officer at CoinShares, which sells investments in digital currencies. Everything else has become more volatile, Demirors told CNBCs Squawk Box Asia on Monday. As we know, volatility is a relative measure, she said. In the current environment, bitcoin is actually less volatile than it has been in the past.

To illustrate the point, the strategist compared the gains between bitcoin and electric carmaker Teslas stock. Teslas shares, which were added to the broader SP 500 index on Monday, have soared more than 676 so far this year. Meanwhile, bitcoin has risen about 220 yeartodate as of midnight EST Tuesday, according to Coin Metrics. If we look at the astronomical rise in the equities market, bitcoins rise actually doesnt feel so wild, Demirors said.

Following sharp declines early in 2020, markets across the globe have been powered mostly by unprecedented monetary stimulus introduced by central banks worldwide in a bid to keep the economy running. Beyond investors shifting perceptions of volatility, Demirors added that the industry surrounding bitcoin has matured and evolved over the last two years.

Source FXPro

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