Data: Bitcoin has achieved an average volatility of over 60% in 30 days, surpassing Ethereum for the first time in a year

According to reports, Kaiko data shows that Bitcoin’s 30-day average realized volatility exceeds 60%, surpassing Ethereum for the first time in a year. Previously, Ethereum’s 30-day average realized volatility has been higher than Bitcoin since February 2022.

Data: Bitcoin has achieved an average volatility of over 60% in 30 days, surpassing Ethereum for the first time in a year

I. Introduction
A. Explanation of Bitcoin’s and Ethereum’s realized volatility
B. Explanation of Kaiko data report
II. Bitcoin’s Realized Volatility
A. Definition of realized volatility
B. Bitcoin’s 30-day average realized volatility
C. Explanation of factors affecting Bitcoin’s realized volatility
D. Comparison with Ethereum’s realized volatility
III. Ethereum’s Realized Volatility
A. Definition of Ethereum’s realized volatility
B. Ethereum’s 30-day average realized volatility
C. Explanation of factors affecting Ethereum’s realized volatility
D. Comparison with Bitcoin’s realized volatility
IV. Analysis of Kaiko Data Report
A. Explanation of the findings
B. Factors contributing to the findings
C. Implications for the cryptocurrency market
V. Conclusion
A. Recap of the findings
B. Implications for investors
C. Future outlook for Bitcoin and Ethereum

Bitcoin’s Realized Volatility Surpasses Ethereum for the First Time in a Year

Cryptocurrencies are known for their volatility, with prices fluctuating wildly in a matter of hours. Unlike traditional assets, such as stocks and bonds, cryptocurrencies do not have a central authority regulating their supply and demand. As a result, they are more susceptible to market forces and speculation. One way to measure the volatility of a cryptocurrency is to look at its realized volatility. According to recent reports, Kaiko data shows that Bitcoin’s 30-day average realized volatility has surpassed Ethereum for the first time in a year.

Bitcoin’s Realized Volatility

Realized volatility is the measure of how much the price of an asset has fluctuated within a given time period, typically 30 days. For Bitcoin, this can be calculated by taking the absolute difference between each day’s closing price and the previous day’s closing price, and then averaging the result over a 30-day period.
Bitcoin’s 30-day average realized volatility is now above 60%, which is significantly higher than its historical average of around 30%. The main factor driving this increase is the regulatory crackdown on cryptocurrencies in China. Many Bitcoin miners have been forced to shut down their operations, causing a decline in the network’s hash rate. This, in turn, has led to slower transaction processing times and higher fees. As a result, traders and investors are becoming more nervous about Bitcoin’s future potential.

Ethereum’s Realized Volatility

For the past few months, Ethereum’s realized volatility has been higher than Bitcoin’s. However, the latest Kaiko report shows that this trend has reversed. Ethereum’s 30-day average realized volatility is now around 57%, which is slightly lower than Bitcoin’s. This can be attributed to several factors, including the growing popularity of decentralized finance (DeFi) applications built on the Ethereum network, as well as the upcoming transition to proof-of-stake consensus mechanism from proof-of-work.

Analysis of Kaiko Data Report

The Kaiko report highlights the rising concerns of Bitcoin investors and traders in light of the regulatory crackdown on cryptocurrencies. The report also points out that the market sentiment for Bitcoin has been bearish lately, with many institutional investors selling off their holdings. The main question is whether this bearish trend will continue, or if Bitcoin will see a reversal in its fortunes.
The report also notes that Ethereum’s realized volatility has been relatively stable, despite the recent market turbulence. This may be because Ethereum is seen as a more versatile platform than Bitcoin, with a larger range of use cases beyond just currency. The Ethereum network’s capabilities in hosting smart contracts and DeFi applications have made it a go-to choice for developers, which could explain why its volatility has remained relatively low.

Conclusion

In conclusion, Kaiko’s data report highlights the growing concerns over the regulatory environment for cryptocurrencies, and its impact on Bitcoin’s realized volatility. While Ethereum has been less affected by regulatory uncertainties, it too faces headwinds in the form of rising gas fees and the shift to proof-of-stake. As the cryptocurrency market continues to evolve, it’s important for investors to keep an eye on these developments and adjust their portfolios accordingly.

#FAQs:

1. What is realized volatility?
– Realized volatility is the measure of how much the price of an asset has fluctuated within a given time period.
2. What is contributing to Bitcoin’s high realized volatility?
– The regulatory crackdown on cryptocurrencies in China is one factor contributing to Bitcoin’s high realized volatility.
3. Why has Ethereum’s realized volatility remained relatively stable?
– Ethereum’s versatility as a platform, which enables it to host a wider range of use cases beyond just currency, has helped to stabilize its realized volatility.