Wall Street has always been iffy about the new kid on the block, crypto, or BTC. Wall Street’s primary gripe against BTC is its volatility. As per Wall Street folks, BTC trading is riddled with problems and volatility. This was the primary gatekeeping commentary that BTC enthusiasts had to hear for years.
However, there have been some changes over the years, and even the biggest players in Wall Street, like President Trump himself, have shown signs of a changed perspective. As soon as the President changed his stance, the administration followed suit. However, aggressive trade policies have affected the S&P 500 landscape.
Rise Of BTC
On April 2nd, President Trump shared more news about the financial market, instantly sending the market on a downward spiral. As per TradingView, the market saw an annual volatility percentage surge from 50% to 169%. This was a considerable jump and is among the highest since the 2020 pandemic.
Subsequently, BTC’s seven-day realized volatility doubled to around 83%. This has put people on edge, but it is still lower than the US asset market. Therefore, this suggests that BTC is finally evolving into a low-beta hedge against stocks.
However, some suggest that this is just temporary. Meanwhile, the results stay the same in the 30-day average as well. Hence, this could be the evolution that crypto traders might have sought.
COinshare’s Head of Research James Butterfill addressed this in an email: “Equity markets [have] experienced a dramatic spike in volatility—surpassing that of Bitcoin, which is currently seeing a decline in volatility. This raises the question: should investors place their trust in assets that are highly susceptible to political influence and human error, or in a mathematical framework and emerging store of value that is more resilient to such risks?”
Therefore, the days of BTC being more volatile than assets is finally past us.
