Has Bitcoin (BTC) Become the New ‘Stablecoin’?

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As the crypto-verse welcomes multiple stable coins pegged to the USD and the Australian Dollar, the King of Crypto – Bitcoin (BTC) – has particularly been one of the most stable cryptocurrencies in the markets for close to a month now. Looking at its market performance since late September, we find that BTC has only dropped once to levels below $6,300, and for a time period of less than a week. All other times, the digital asset has been oscillating at levels above $6,400. Below is a chart from coinmarketcap.com to give a better visual cue of the situation.

Has Bitcoin (BTC) Become the New ‘Stablecoin’?

Less Volatile than the Nasdaq, DOW and S&P 500

In a tweet early this morning, Anthony Pompaliano – founder and partner at Morgan Creek Digital – noted that BTC had been less volatile than NASDAQ, DOW and S&P 500 over the past month. His tweet was later retweeted by the CEO of Binance who asked the opinion of the crypto community on the validity of this statement. The two tweets can be found below.

This Proves Crypto Is NOT Correlated With the Traditional Stock Market

Mati Greenspan, Senior Market Analyst at eToro, also weighed in on Bitcoin stability over the past month. He had this to say via an email commentary.

For this precise moment in time crypto is not the most volatile asset class. This is really the best possible thing we can see for this industry.

The fact that the current stock market rout has not had any effect whatsoever (positive or negative) on the cryptoassets is an extremely positive sign. This is a prime example of how crypto’s are uncorrelated and it only serves to increase their use case as a powerful tool for asset management.

Has BTC Become Another Stablecoin?

Using the definition that stablecoins are designed to minimize the volatility of the crypto markets, we can conclude that Bitcoin is not one of them. Most stablecoins are pegged and backed by regular fiat currencies such as the United States Dollar. However, BTC has no such backing or direct relation to fiat currencies.

What then can be concluded – and as Mati Greenspan commented – is that at this moment cryptocurrencies have proven to be less volatile. Another theory can be that Bitcoin has bottomed out and is going through an accumulation phase in preparation for massive gains as Wall Street makes an entry into the space through Bakkt in December.

What are your thoughts on the current stability of Bitcoin? Do you believe it is an indicator of good things to come in the future? Please let us know in the comment section below. 

[Image courtesy of yogayubacity.com]

Disclaimer:This article is not meant to give financial advice. Any opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.