We are currently in India, and the country is currently in the middle of Deepavali this week (the festival of lights) so we want to keep the blurb very short. Too many feasts to binge on!
BTC’s volatility has dropped below 25% on an annualized basis last week for the first time in over two years. In fact, for a very brief period, Bitcoin’s 30-day annualized volatility was lower than that of the S&P 500. Yes, you read that right!
Volatility falling is a positive sign for any asset that is striving to become a store of value. However, we don’t need to tell you that dampening volatility is just a lull before the storm and will start rising again as the next bull cycle kicks off (this time perhaps due to the institutional activity). It’s truly ironic to see BTC’s period of low volatility coincide with the explosion in stablecoin projects that we are now witnessing. Perhaps, this is not a coincidence; For all we know, the ‘invisible hand of Satoshi’ is at work, in response to those among us that believe that Bitcoin can never be stable enough to used as a store of value or a unit of account.