• Cryptocurrencies have become more stable than oil, with a 90-day annualized volatility of 35% and 37% for Bitcoin and Ethereum respectively, compared to 41% for crude oil.
• The lack of external catalysts has caused the top cryptos to remain in narrow ranges.
• Oil benchmarks like Brent Crude and West Texas Intermediate (WTI) have increased by 12% and 15%, respectively, since mid-June due to continuous supply curbs.
Cryptos More Stable Than Oil
The 90-day annualized volatility for Bitcoin [BTC] and Ethereum [ETH] plummeted to multi-year lows of 35% and 37%, respectively. This made them less volatile than the ‘Black Gold,’ which was at 41%. Digital assets data provider Kaiko reported this turn of events on 16 August.
Silent Phase for Crypto Innovations
Experts said that the silent phase could be utilized for innovations in the industry. The lack of external catalysts forced top cryptos to stay glued to their narrow ranges. The fiercest critics of cryptocurrencies’ high volatility may be finding it hard to stomach the ongoing dynamics of the market.
TradFi Interest Driving Market Rally
The June rally was built on the hype around TradFi interest in digital assets. However, things haven’t moved faster since then due to delays from U.S Securities & Exchange Commission (SEC). BTC and ETH recorded week-to-date (WTD) losses of more than 3%.
Oil Benchmarks Soaring High
Continuous supply curbs have sent crude oil benchmark indices like Brent Crude and West Texas Intermediate (WTI) soaring up by more than 12% until press time value of $83.61 per Investing.com . WTI was up 15%.
Shrinking Liquid Supply Impacting Volatility
The dip in crypto assets’ volatility could be attributed to shrinking liquid supply, i.e., the number of tokens available for buying and selling as BTC and ETH reserves on exchanges hit multi-year lows at the same time period.