Crypto Long & Short: Crypto Markets Are Maturing, but Gen Z Is Rewriting How Markets Work

Bitcoin may seem to be more volatile than traditional assets but in crypto markets it is considered relatively stable compared to other cryptocurrencies. However, that pricing situation may change during the third quarter, according to options market data, which indicates that BTC volatility will be higher than that of ETH in coming months. TAKEAWAY: This is notable as, traditionally, ETH’s volatility is higher than that of BTC. It is also surprising, given the recent boost in activity in decentralized finance tokens that run on the ethereum blockchain. The switch could be due to a build-up of expectations that BTC’s recent tight trading range will be broken with a sharp move. But, historically, except for the late 2017 run-up, periods in which ETH’s volatility has exceeded that of BTC have coincided with slumps in BTC’s price.