According to a report published by Bitfinex Alpha on Monday, Bitcoin’s volatility has witnessed a significant surge in the first week of October, surpassing its 200-day average1. The report analyzed the correlation between Bitcoin and major equity indices, such as the S&P 500, the Nasdaq 100, and the Nikkei 225, and found that they have been moving in tandem since the beginning of the year.
The report suggested that Bitcoin’s volatility is influenced by macroeconomic factors, such as inflation expectations, monetary policy, and geopolitical events. The report also noted that Bitcoin’s volatility tends to increase during periods of high uncertainty and risk aversion in the global markets.
The report concluded that Bitcoin’s volatility is likely to remain elevated in the near future, as the crypto market faces several challenges, such as regulatory uncertainty, environmental concerns, and competition from other cryptocurrencies. The report advised investors to be cautious and diversify their portfolios with other assets, such as gold and bonds.