Bitcoin (BTC), Cryptocurrency, Stock Market–Last week EWN reported on the development that tech sector stocks, on average, exhibited more price volatility through the traditional markets than Bitcoin. As Bitcoin price volatility continues to reach an all time low, as the currency enters another week of largely sideways trading, the U.S. S&P 500 is now more turbulent in valuation than the number one cryptocurrency by market capitalization.
On Nov. 2, Bloomberg reported that Bitcoin had officially achieved lower price volatility than Standard & Poor’s 500 Price Index, a collection of a large market capitalization companies that have traditionally been useful for gauging the health of the broader market. According to Bloomberg, the ten-day historical volatility for the index is hovering around 27, compared to 15.7 for that of Bitcoin. While Bitcoin managed to surpass tech stocks last week in terms of lowering relative price volatility, this week’s development is promising news for cryptocurrency advocates that are hoping for BTC to become a more viable source of digital tender. In addition, the dropping price volatility for Bitcoin–while only fleeting at present–combats one of the most common criticisms made against the currency by economists, predicting that few average consumers are willing to transact in a tender that fluctuates day to day in value.