Bitcoin is often criticized for being too volatile a financial instrument. Interestingly, the digital currency has outperformed traditional tech giants like Amazon, Tesla and Google in this regard over the past six months. These companies have faced bigger declines than Bitcoin, but have not faced the same criticism.
Recently, Twitter account Bitcoin Archive pointed out these remarkable stats: Amazon was down 33%, Tesla was down 56%, while Google was down 32%. So Bitcoin, down 31%, isn’t doing too badly by comparison. The question arises: is Bitcoin really that volatile? Sure, but the larger fluctuations in tech companies get less attention – a clear double standard in finance.
Bitcoin Archive highlights that the digital currency is the only asset that has recovered and is once again battling to reach a new all-time high. Currently, its value is hovering around $103.000, and bulls and bears are still battling it out to see who will be at the top of the market.
It may be a bit childish to "take a stab" at the financial establishment, as many also believe that tech giants are too volatile in their turn. But from the perspective of the crypto community, it is of course attractive to share such insights. That Bitcoin did not fall faster than its traditional counterparts is remarkable to say the least.
In the past, Bitcoin was often seen as the biggest loser when markets were under pressure. Today, however, the digital currency is showing itself as a serious player, which has earned its place next to Amazon and Google. This new development indicates that Bitcoin is slowly becoming less volatile.
One of the reasons for these changes is the introduction of Bitcoin ETFs, in which BlackRock plays a significant role. In addition, more and more Bitcoin companies are trying their best to acquire large amounts of BTC to remove from the market, which promotes stability.
Why is Bitcoin often labeled as volatile?
Bitcoin gets the label of volatility because of its sharp price swings compared to traditional investments like stocks and bonds.
What role do Bitcoin ETFs play in the currency's stability?
The launch of Bitcoin ETFs has led to a wider audience investing in Bitcoin, contributing to increased stability and less extreme price fluctuations.
How does Bitcoin compare to other tech companies?
Over the past six months, major companies like Amazon, Tesla and Google have experienced bigger declines than Bitcoin, putting the digital currency in a better light in terms of profitability and stability.
