For the first time, the cryptocurrency Bitcoin has become less volatile and more stable than the US Nasdaq and S&P 500 indices in New York.
According to Arab Net, a report by Coin Telegraph stated that the US dollar index is rising and falling at rates of up to 2% per day, and US stock indices are rising and falling and fluctuating within high levels, which has made Bitcoin recently more stable than it for the first time.
The latest data showed that Bitcoin rose against the US dollar, reaching its highest level at $21,473, its highest level in nearly seven weeks.
The cryptocurrency benefited from the latest US economic data, while the dollar suffered on the contrary, with the US dollar index losing 2% in a single day for the first time in years, helping to fuel the rising risk of the asset.
Bitcoin has recently been characterized by low volatility and a narrow trading range, which helped it beat assets including stocks for the first time ever.
Tyler Winklevoss, co-founder of trading platform Gemini, said he believes cryptocurrency markets will continue to serve as a leading indicator of the market's path this year, as well as in 2021, Coin Telegraph reported.
Economic analyst David Boyle said in a report issued by (ARK) that the relative volatility in the price of Bitcoin decreased not only against stocks, but also against major currency pairs. With the increase in overall uncertainty and the strength of the US dollar, FX pairs were negatively affected while Bitcoin was relatively stable.
He added that bitcoin's 30-day volatility is roughly equivalent to that of the pound and the euro for the first time since October 2016. Although the Fed's tightening could continue to fluctuate, the strength of bitcoin relative to foreign currencies is an encouraging sign.
