Since the inception of Bitcoin, the leading cryptocurrency, the terms "volatility" and "Bitcoin" have become synonymous. It is difficult to describe the crypto phenomenon without mentioning high volatility and fluctuation as one of its characteristics.
However, if you look at a longer time horizon, volatility in crypto currencies is gradually declining as digital coins mature and gain acceptance.
Price swings are likely to narrow even further as more institutional investors enter the digital arena. Even during the recent rally that brought the price of Bitcoin close to $67,000, volatility measured over 260 days fell to around 66.
Growing interest by large investors and companies alike is now crystal clear, as can be seen from the case of the Digital Currency Group (DCG). DCG is a capital market firm centered on cryptocurrencies. The company has been able to raise $700 million and has an unbelievable valuation of $10 billion. Its latest funding round was dominated by CapitalG, the growth fund of Alphabet (NASDAQ:GOOGL), SoftBank Group (OTC:SFTBY), and Ribbit Capital.
Oil
Oil prices rose on Monday as demand for crude oil is likely to climb as the winter months approach and fuel commodity shortages continue to worsen. Supply, on the other hand, is likely to stay stable as major oil producing countries continue with their present production levels.
Brent crude oil rose 1.2% yesterday, closing at $84.71 a barrel. Due to a lack of supply, Beijing was compelled to draw on its diesel and gasoline reserves to ease mounting price pressures, although the impact was minor.
Similarly, in an effort to close the gap between oil demand and supply, energy corporations in the United States have erected natural gas and oil rigs over the past 15 months.