According to the latest reports, Changpeng Zhao, the CEO at Binance has talked about the price volatility of Bitcoin (BTC). While talking about Bitcoin’s price, he has compared the volatility of the largest cryptocurrency with the volatility of Apple and Tesla.
Over the course of time, the market capitalization of Bitcoin (BTC) has increased tremendously. Its market capitalization is currently around $1.04 trillion and can be compared with that of Tesla and Apple.
Zhao stated that the price volatility of Bitcoin is less than that of Apple and Tesla. He stated that it is true that Bitcoin (BTC) has been perceived as one of the most volatile and unstable digital assets in the industry.
However, Bitcoin (BTC) has gained so much adoption from the mainstream industry that it has now started becoming stable. Since the beginning of 2021, Bitcoin’s volatility has been very less and despite experiencing price drops; the asset regained its value faster than before.
One of the on-chain data-analyzing firms, Woobull has recently shared its research it conducted on Bitcoin’s volatility. Woobull has quoted the past 60-day volatility data it has collected from Bitcoin (BTC), showing how its volatility has lessened these days.
The stats show that the price volatility of Tesla and Apple has remained less volatile as compared to Bitcoin (BTC).
He stated that volatility is not only a phenomenon found in cryptocurrencies but also is spread all over the industries. He stated that many people continue to criticize the volatility of Bitcoin (BTC) without even doing much research around it and going through the stats.
If thorough research were to conduct on Bitcoin (BTC), the investor would realize that its volatility is lesser than the volatility of shares of several mainstream institutions.
Instead of going with data, the investors who do not even invest in Bitcoin (BTC), start talking about its volatility. They do it because they hear others talk about it and do not even bother looking at the stats themselves.
Zhao even went ahead to the point where he called out such people for having a herd mentality. This means that whenever such investors hear the news of Bitcoin (BTC) going up, they start investing in it. They continue taking the profits from it and when they hear something bad about it, they withdraw and run away.
As a result, Bitcoin (BTC) becomes volatile for those who have the same herd mentality, unlike those who are Bitcoin (BTC) enthusiasts.
It is because of investors like MicroStrategy, Michael J. Saylor, and Jim Cramer that Bitcoin (BTC) continues growing stable by the day.
No matter what happens, these investors pay close attention to Bitcoin’s market and see exactly where it is headed. Their decisions are based on the data they collect rather than the news or stories they hear from others about Bitcoin (BTC).