Is bitcoin much safer than playing stocks? What is the price of bitcoin now?

Stocks are known as high-risk, high-return assets. Cryptocurrencies are even more risky but can also provide huge profits.

One reason for this is the extremely high volatility, and cryptocurrencies are well known for that.

However, for more than a month, the volatility of bitcoin, the most popular cryptocurrency, has been lower than that of Wall Street's S&P 500 and Nasdaq indexes.This means, when compared to stocks, investing in bitcoin is safer. The gains and losses were not as large as those of the S&P 500 and Nasdaq.

CNBC International, citing Kaiko, reported that bitcoin's 20-day average volatility has dropped below both indexes for the first time since 2020.

Kaiko also reported that the 30-day and 90-day volatility gaps between bitcoin and stocks have continued to widen since mid-September.

"Bitcoin volatility has dropped to its lowest level in years, while stock volatility is at its lowest since July," Clara Medalie, head of research at Kaiko, told CNBC International Saturday (10/22/2022).

"The stock market has certainly experienced volatility in recent months due to high inflation and a strengthening US dollar. rising interest rates, the Russo-Ukrainian war and the energy crisis. "Data shows the cryptocurrency market is currently less reactive to macro conditions than it was at the beginning of the year, while stocks are still very sensitive," he added.

Bitcoin Price (US$/Coin)

The decline in volatility can be seen from the movement of bitcoin, which is in the range of US $ 19,000/troy ounce, including on Sunday (22/10/2022).

Bitcoin's decline in volatility is good news, but it could also mean that it's no longer in demand. On Tuesday (10/18/2022), data provider company CryptoQuant said there was a capital outflow of around US$940 million in bitcoin assets from crypto exchange Coinbase.

The capital outflow became the largest in a day since June 17. In addition, in the last one month, bitcoin capital was recorded at US$ 2.4 billion.

That's just from bitcoin only, not from other crypto assets. To note, Coinbase is a favorite crypto exchange for institutional investors. The capital outflow that occurs can be an indication that institutional investors currently see bitcoin as unattractive.

Naturally, its value has dwindled below US$20,000/coin, and since touching a record high of US$ 68,000/coin in November 2021, the price of bitcoin has fallen more than 70%.

Forbes in early September reported that many analysts saw the decline in the price of bitcoin et al as an indication of a return to the "crypto winter," namely a sharp decline in prices followed by a tendency to stagnate for a long time.

The last "Crypto winter" lasted for 3 years, from January 2018 to December 2020.