Indeed, in 2022, both Bitcoin and Ethereum (ETH), the two largest cryptocurrencies by market capitalization, recorded absolute returns of 6.5% and 4.5% on Consumer Price Index (CPI) print days, respectively, as per a study by CryptoCompare shared with Finbold on November 3 indicates. Notably, the returns were above the yearly average, indicating that the assets had failed to live up to the expectation of acting as an inflation hedge.
Bitcoins dropping volatility
Despite Bitcoin’s inability to live up to the expectation of acting as a hedge, the asset has, in recent weeks, exhibited price stability trading in the range of $19,000-$21,000, translating to a drop in volatility. In fact, Bitcoin volatility dropped below the Nasdaq and S&P 500 for first time since 2018. Moreover, the study points out that Bitcoin’s average annualized volatility was 79%, while the current average volatility stands at 63%.
Bitcoin accumulation spree
Furthermore, Bitcoin’s mixed performance has inspired a general market belief that the asset will likely rally in the coming months. Currently, most investors are looking for a possible price bottom, while the lows have also inspired an accumulation of spree. In this line, the researchers noted that the accumulation contradicts previous bear markets. According to the report: Meanwhile, Bitcoin is attempting to push past the $21,000 level. By press time, the asset was trading at $20,200 with gains of about 1% in the last 24 hours. Notably, Bitcoin appeared in line to surpass $21,000 before correcting in reaction to the latest Federal Reserve interest rate hike. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
