Bitcoin Becomes Volatile As Halving Approaches
Bitcoin (BTC), the leading cryptocurrency by market value and trading volumes, has experienced a significant increase in volatility compared to ether (ETH).
The annualized 30-day historical volatility of Bitcoin rose to nearly 60% last week, surpassing ether’s 30-day realized volatility by nearly 10 percentage points.
This surge in volatility coincided with the U.S. Securities and Exchange Commission’s greenlighting of nearly a dozen spot bitcoin exchange-traded funds (ETFs), allowing traders to take exposure to the cryptocurrency without owning it.
The decreasing probability of an ETH ETF being approved by the SEC by May has demotivated ether traders.
The upcoming reward halving event, which reduces the pace of per block BTC emission by 50%, could also contribute to higher volatility in the cryptocurrency.
(With inputs from Shikha Singh)
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