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August 7, 2023

Bitcoin Volatility Hits All-Time Low

August 7, 2023

As the middle of Q3 edges closer Bitcoin’s volatility has fallen to record-breaking levels. Major altcoins, including Ethereum and XRP, are also witnessing historic lows. 

Meanwhile, major players in the industry revealed their second-quarter results, with Coinbase beating earnings expectations, Block delivering impressive results driven by Bitcoin sales, and MicroStrategy remaining committed to its Bitcoin strategy. 

Additionally, Miami Mayor Francis Suarez reinforced his support for the crypto industry by confirming that he is accepting Bitcoin donations for his campaign for Presidency, aligning with his vision to transform Miami into a prominent Bitcoin hub. 

  • Bitcoin’s volatility falls to an all-time low
  • Coinbase and Block exceed expectations while MicroStrategy adds to its bags
  • Miami Mayor to accept campaign donations in Bitcoin

Bitcoin’s volatility falls to an all-time low

Amidst a challenging period for the cryptocurrency markets due to increased regulatory scrutiny, an intriguing trend has emerged in the crypto space. Unprecedentedly low volatility is now exerting a significant impact on the performance of Bitcoin (BTC) and major altcoins during the third quarter of 2023.

The 30-day estimated Bitcoin (BTC) volatility, which represents the average standard deviation of daily returns, has plummeted to record lows since the inception of the Bitcoin (BTC) network.

Recent data from the Buy Bitcoin Worldwide project reveals that this critical indicator currently stands at a meager 0.75%, making it an absolute All-Time Low (ATL) for the world’s largest cryptocurrency. 

To put this into perspective, the previous lowest reading was documented in July 2020 when it dropped below 1.5%.

Even when considering the 60-day estimated Bitcoin (BTC) volatility, the chart showcases a recent local low observed in January 2023, where the figure dipped below 1.37%. Presently, this indicator rests at 1.44%, signifying an ongoing trend of decreasing volatility for Bitcoin (BTC).

Average 30-day Bitcoin volatility time series
Average 30-day Bitcoin volatility time series



Both the 30-day and 60-day estimated volatility indicators for Ethereum (ETH) are also now at historic lows, further reinforcing the broader trend of shrinking volatility in the market.

One of the most striking cases of this trend is XRP, which witnessed an unprecedented drop in volatility after experiencing an impressive 75% rally. The significant price surge was catalyzed by Ripple’s interim victory in the SEC’s legal case, however, since then the momentum of the coin has ground to a halt.

Perhaps the most remarkable revelation comes from K33 Research (formerly Arcane) experts, who recently calculated that Bitcoin’s (BTC) 5-day volatility has surprisingly dipped below that of gold (XAU) as well as the renowned NASDAQ and S&P 500 indexes. 

This unusual occurrence, the third largest drop since the infamous Black Friday in Crypto during 2020, has led analysts to predict that periods of market turbulence may follow such substantial volatility downturns.

Average 5-day Bitcoin volatility compared to Nasdaq, S&P 500, and Gold
Average 5-day Bitcoin volatility compared to Nasdaq, S&P 500, and Gold



Coinbase and Block exceed expectations, while MicroStrategy adds to its bags

Last week saw several major players in the world of crypto reveal eagerly awaited financial results for the second quarter. 

Among the companies in focus were Coinbase, Block, and MicroStrategy. 

While Coinbase beat earnings expectations in Q2 with gross revenue of $708 million, earnings for the platform had fallen 8% in comparison to the previous quarter: a fall Coinbase attributed to an overall decline in trading volumes and regulatory challenges.

Transaction revenue, a crucial metric for Coinbase, also decreased by 13% quarter-over-quarter to $327 million. 

Despite these challenges, Coinbase reiterated its optimism about the future in its earnings report and highlighted the progress in crypto regulation, with hopes for bipartisan legislation that supports consumer protections and a robust market structure framework while nurturing crypto innovation.

Out of the three, Block was the company that outperformed. The company reported net revenue of $5.53 billion, a significant increase compared to the same period last year when the figure stood at $4.4 billion. 

According to reports, Bitcoin sales played a significant role in Block’s impressive performance. 

In Q2, the company’s Bitcoin revenue grew by 34% compared to the previous year. The increase in revenue and gross profit was attributed to selling more Bitcoin to customers, although it was partially offset by the decline in Bitcoin’s average market price compared to the prior year.

Block’s popular Cash App service, which was launched in 2013, also saw a 37% increase in gross profit to $968 million. 

Finally, during its Q2 earnings report, MicroStrategy revealed that it remained steadfast in its Bitcoin strategy in 2023.

The company disclosed that it purchased 12,333 Bitcoin during Q2, bringing its total holdings to an impressive 152,333 Bitcoin with a carrying value of $2.3 billion and a market value of $4.6 billion.

Despite a notable decline in impairment charges for its Bitcoin holdings compared to the previous year, MicroStrategy remains committed to accumulating more Bitcoin. 

The company’s executive chairman, Michael Saylor, emphasized its dedication to cryptocurrency and highlighted the positive impact that potential exchange-traded funds (ETFs) could have on the market.

MicroStrategy stock performance in comparison to indices and other US stocks
MicroStrategy stock performance in comparison to indices and other US stocks



Miami Mayor to accept campaign donations in Bitcoin

In a move that underscores his commitment to the cryptocurrency industry, Bitcoin-friendly Miami Mayor, Francis Suarez, has announced that his presidential campaign will now accept donations in Bitcoin (BTC). 

Speaking during an interview with CoinDesk TV, Suarez declared, “Officially, my campaign is accepting Bitcoin. This is a step towards harnessing technologies that will empower people with opportunities for wealth creation, free from the influence of human motives or political agendas.”

Supporters looking to contribute to Suarez’s campaign can now donate as little as 0.00034 Bitcoin, approximately equivalent to $1, through the official website FrancisSuarez.com.

During the interview with CoinDesk, Mayor Suarez also expressed his criticisms of the Biden administration’s approach to cryptocurrencies, emphasizing the need for a more transparent regulatory framework rather than a heavy-handed enforcement mechanism. 

Furthermore, Suarez reaffirmed his opposition to the idea of a central bank digital currency, voicing concerns about privacy and government surveillance. 

“Nobody wants the federal government knowing where you have your money and how much money you have … I don’t think that there’s anything particularly innovative about that,” he asserted.

Mayor Suarez’s decision to accept Bitcoin donations should come as no surprise, considering his long-standing advocacy for digital assets, particularly Bitcoin, which he believes will democratize wealth for all Americans. 

His vision to transform Miami into a prominent Bitcoin hub has been evident, and he has even chosen to receive his salary in Bitcoin.

Despite one of Suarez’s projects, MiamiCoin, declining by 95% since its inception, Suarez remains committed to the crypto space. 

He firmly believes that the country needs a president who comprehends the intricacies of crypto and artificial intelligence technologies.

Mayor Francis Suarez speaking with CoinDesk TV
Mayor Francis Suarez speaking with CoinDesk TV



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