The relative volatility of the world's leading cryptocurrency by market cap has been in a massive downtrend over the past several months.
In fact, Bitcoin is becoming less volatile relative to the S&P 500, the major stock market index.
Historically, Bitcoin was viewed as an extremely risky asset due to its high volatility compared to traditional markets.
Now, however, its volatility ratio has dwindled, and Bitcoin is behaving more like a traditional asset.
Andre Dragosch, head of research at Bitwise, has noted that Bitcoin is now transitioning from a risky asset to a safe-haven asset.
Over the past several weeks, Bitcoin has been mostly range-bound. Earlier today, the cryptocurrency spiked to an intraday high of $110,386, according to CoinGecko data.
As reported by U.Today, banking giant JPMorgan recently stated that Bitcoin had failed as a safe-haven asset during the global trade turbulence. The banking behemoth noted that gold exchange-traded funds were attracting inflows during the crisis while Bitcoin ETFs suffered.
Some skeptics of the likes of Canadian billionaire Frank Giustra, argue that Bitcoin has never actually traded like gold.
Bloomberg analyst Mike McGlone, who recently turned bearish on Bitcoin, argued last month that the $100,000 level could be the ceiling for Bitcoin due to prevailing risk-on sentiment.
Fidelity's Jurrien Timmer previously noted that the leading cryptocurrency is capable of acting both as a safe haven and a risk-on asset, comparing it to Dr. Jekyll and Mr. Hyde.
Vladislav Sopov
U.Today Editorial Team