the volatility of the stock market exceeds that of Bitcoin

Global markets have witnessed huge volatility levels over the past few months, with all the major stock market indices having seen strong downward pressure that led them to record losses comparable to a recession in the short run of a few weeks. .

During March the stock market was more volatile than Bitcoin!

This turbulence in traditional markets triggered an interesting phenomenon that many investors did not expect: the stock market was more volatile than Bitcoin during the month of March.

This surprising statistic could eventually rekindle the narrative about the "crypto sector as a safe haven" that many investors had adhered to in the past years, but this will only be confirmed if this trend is able to continue for a long period of time.

Cryptocurrencies and the stock market both face a difficult march as volatility rages

It's no secret that March has been a difficult month for practically all major markets, with Bitcoin plummeting from mid-February highs to lows of $ 3,800 just a couple of weeks ago, while the S&P500 declined from late February highs of 3,400 to the recent lows of 2,230 points.

The far-reaching nature of this turbulence has had repercussions on practically all major markets, and even traditional safe-haven goods such as gold and silver have struggled to gain upward momentum.

This downward trend was mainly driven by the COVID-19 pandemic, which was a "black swan" event that occurred abruptly, disrupting supply chains and bringing the economies of many leading countries to virtual stops.

The stock market was able to record a slight hike from the latest lows, which is the result of the US $ 2 trillion stimulus package just released. This package is expected to help boost the nation's economy while keeping struggling businesses and Americans afloat. The crypto sector, on the other hand, cannot count on any support provided by governments, but is proving to stand on its own legs.

Data reveal that Bitcoin is less volatile than the S&P 500

An interesting event that occurred as a result of this recent global uproar is that Bitcoin was less volatile in March than the S&P 500 – despite the massive and initial decline in the cryptocurrency and the subsequent rebound seen a couple of weeks ago.

Nathaniel Whittemore, an expert in the crypto sector, summarized this data in a recent tweet, stating: "Here's a damned statistic: the S & P500 was officially MORE VOLATILE than bitcoin this month.

According to the Fed, the 30-day historical volatility of S&P was 200% (compared to the average of 27%). Bitcoin was 138% (from an average of 65%). " If this trend continues in the future, it is possible that the narrative of the "safe haven" hovering over Bitcoin and cryptocurrencies re-emerges, this time reinforced by the data.