Time to Buy Bitcoin? Key Risk Metrics Say Yes
Bitcoin (CRYPTO: BTC) has finally climbed back over the $30,000 mark -- a level it hasn't seen since April. The crypto is starting to see some important changes in key underlying metrics, and investors obviously like what they see.
Most notably, Bitcoin's volatility is way down. At the same time, Bitcoin's correlation with gold is increasing, while its correlation with tech stocks is decreasing. Both of these would seem to suggest that Bitcoin is becoming less risky. So is it time to buy Bitcoin? Let's take a closer look.
Typically, when investors think about Bitcoin, they think about it as a short-term, speculative asset. But that's increasingly not the case. Bitcoin is actually seeing some of its lowest volatility since 2020. Bitcoin's 90-day annualized volatility is down 50% from its highs during the 2021 bull market rally. What that means in practical terms is that much of the risk of huge, intra-day zigs and zags is disappearing. As of mid-June, Bitcoin had not seen a daily move of more than 6% for more than 70 consecutive trading sessions.
Source Fool.com
