Dow Jones Officially More Volatile Than Bitcoin, Data Show

Photo: Wilfredo Lee, Associated Press

The Dow Jones has officially become more volatile than Bitcoin. Cryptocurrency is showing signs of decoupling from equities, making it an increasingly attractive investment asset.

Bitcoin (BTC) has traded in tandem with equities in recent months, with both asset classes struggling with prevailing macroeconomic factors fueled by skyrocketing inflation and rising interest rates. However, Bitcoin's volatility appears to be on the decline compared to traditional equities as the flagship cryptocurrency shows signs of decoupling from equities, according to Finbold.

As of Oct. 7, the Dow Jones Index, which tracks the top 30 industrial stocks, was more volatile than Bitcoin, data provided by ZeroHedge indicate. This highlights the maturity of the asset given that it has been classified as one of the most volatile investments. It should be noted that digital gold proponents have been arguing for years that once Bitcoin matures, characterized by wider adoption, the asset will become less volatile and trade like traditional assets.

In general, Bitcoin has historically been very volatile. This made it a very risky asset, which brought high profits to those who understood the market, and huge losses to those who made a mistake in their actions. Traditional financial markets are usually much more stable. However, the change in volatility can be attributed to Bitcoin retreating from all-time highs, which saw the asset consolidate around $20,000 for several weeks.

For now, this level is seen as a temporary bottom for Bitcoin after an impressive bull run that culminated in an all-time high of nearly $68,000 at the end of 2021.

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