The crypto winter has severely affected Bitcoin, plunging its volatility to the bottom line and hitting the lowest since July 2020.
Bitcoin has been a boring and unattractive digital asset which was once known for its extreme volatility. Bitcoin is continuously facing rejection at $20K price level and hovering around a range-bound area between $18.9K to $19.6K. Bitcoin has failed to show bullish promises as its volatility hits its lowest since July 2020 along with Ethereum.
Bitcoin To Bring More Bearish Woes For Investors
Since May, the crypto winter has not brought any fruitful news to investors as leading cryptocurrencies have reached the worst, failing to bring significant price action in the chart.
Price actions have muted the hype and faded the old glory of the cryptocurrency market as annualized BTC volatility reaches the bottom line. According to CoinMarketCap, Bitcoin is currently trading at $19.3K, with a downtrend of nearly 0.39%. However, Ethereum is trading in a positive range as it trades near $1,348 with an uptrend of 0.17%.
The less volatility of Bitcoin has severely affected the crypto market’s sentiments and barred the growth graph from moving upward. According to the Block’s data, the annualized Bitcoin volatility is currently trading at 27.06%, the lowest level since 2020 when it dropped to 23.37%. The volatility of a cryptocurrency is measured by 30 days’ daily percentage deviation in the price graph. Prominent crypto analyst TechDev stated, “$BTC / $NASDAQ weekly Bollinger Bands are the tightest in # Bitcoin’s entire history. Price vs. NASDAQ peaked at BTC’s last impulse top in April 2021 and has been consolidating during the 1.5 year correction.”
On Monday, AAVE and XTZ saw a quick rise after being added to Robinhood. AAVE is trading at $82.26 with a downtrend of 6.66%, while XTZ is trading at $1.36 with a price decline of 1.69% from yesterday’s price.
Bitcoin continues to keep moving at the same pace and in the same direction as the general stock market, as both are interconnected. It is to be highlighted that Bitcoin’s 20-day volatility has dropped below the S&P 500 and the NASDAQ equity indices for the first time since 2018. This now occurs often as there are some risky tech stocks that get impacted due to several macroeconomic factors and slump hard to the bottom. As these stocks are correlated with the cryptocurrency market, it often controls the price action of several crypto coins.
ARK Makes Huge Investments On Crypto Stocks
According to a report, Cathie Wood’s ARK Investment Management has made massive investments by purchasing shares of Coinbase, Block and Robinhood. The ARK Next Generation Internet ETF bought 4,917 Block shares, valued at over $280K. The firm also bought 16,503 Robinhood shares worth around $168K.
The ARK Fintech Innovation ETF has also made investments on Coinbase as it bought 10,880 shares worth around $722K. ARK ETF also bought 3,183 Block shares ($181K) and 5,291 Robinhood shares ($50K). Block now acquires 9.18% of ARK’s portfolio, while Coinbase and Robinhood take 8.12% and 6.39%, respectively.
Ark sold over 1.4 million Coinbase shares when the exchange faced controversies in July, resulting in price turmoil. However, Coinbase is going to announce its third-quarter earnings on November 8, but the expectations are pretty worrying as per the firm’s second-quarter earnings call. Jack Dorsey’s Block will publish its third-quarter earnings on November 9, while Robinhood will share its earnings on November 2.