Bitcoin’s 30-day volatility plunged to 15.47%, half of what it used to be a year ago.dated 11 October, the king coin had the highest Sortino Ratio when compared to mainstream financial instruments of the market.
Bitcoin’s value of 0.57 turned out to the best in the list which included major stock indices like the Nasdaq 1oo and S&P 500 and the U.S. Dollar Index The Sortino ratio measures the risk-adjusted return of an investment asset and is widely used metric in traditional finance. Put simply, it comparesThe investor would prefer the one with the higher Sortino ratio because it means that the investment is earning more return per unit of the bad risk that it takes on.
Clearly, Bitcoin’s higher Sortino Ratio gave it an edge over traditional finance instruments. Moreover, many of these entities showed negative Sortino Ratios, suggesting that investors might not be rewarded at all for the risk taken with the investment.The sharp drop in potential risks with cryptos could be linked to the ongoing low volatility regime of the market. Barring intermittent bouts of high activity, Bitcoin remained subdued for the last two quarters.
As of this writing, Bitcoin’s 30-day volatility was 15.47%, half of what it used to be a year ago. Moreover, Bitcoin was less volatile than tech stocks, and nearer to other mainstream assets.A higher risk-adjusted return boded well for the future adoption of the world’s largest cryptocurrency. After all, who doesn’t want to invest in risk-free assets?
This was also reflected in the growing ownership of Bitcoin. Despite the market downturn, wallets with non-zero balance proliferated, according to data from Glassnode.Aniket is a full-time journalist at AMB Crypto. With experience in news publishing and content management, he is now increasingly tangled up in the web of cryptocurrencies and blockchains. His focus lies on the intersection between cryptos and traditional finance.