Bitcoin is more volatile than Ethereum

ETF inflows in the billions, bull market and halving: Bitcoin's volatility is on the rise. In doing so, the cryptocurrency is surpassing Ethereum.

The largest cryptocurrency in terms of market capitalization is considered extremely volatile in the traditional financial world. With daily price jumps of more than ten percent - up and down - it is Bitcoin an investment for investors who take risk. At least that is the view of some critics.

Compared to the crypto market, however, Bitcoin's price volatility is negligible because the cryptocurrency is considered relatively stable in value. Indeed, it takes significantly more capital to affect the market capitalization of the world's ninth most valuable asset. However, the Bitcoin Spot ETFs authorized in January have resulted in an inflow or outflow of capital: Bitcoin is now more volatile than Ethereum.

Volatility: Bitcoin catches up with Ethereum

Bitcoin's historical or realized 30-day annualized volatility rose to nearly 60 percent late last week, surpassing Ether's 30-day volatility by nearly 10 percent. This is according to data from Kaiko.

At the time of writing, however, BTC and ETH are on par: both cryptocurrencies have fallen by just under five percent in the past 24 hours. Bitcoin is trading at $66,535 and Ethereum at $3,349. The total market capitalization is $2.5 trillion.

Rising volatility before halving?

According to Greg Magadini, director of derivatives at Amberdata, volatility will increase after the halving - due to a price correction. This is because the halving becomes a "sell the news" event, said Magadini in a newsletter.

The ETC Group's head of research, André Dragosch, also agrees. However, it is expected that the Bitcoin price in the long run will rise due to the halving of supply. ETC Group's research team made this finding in a thesis recorded. "The results indicate that Bitcoin's halving will initially be a non-event and only become significant about 100 days later," they conclude.