Tesla ‘Eating Bitcoin’s Lunch’ as Realized Volatility Sank to its Lowest in Three Years


July 15, 2020 4:06 pm

Tesla ‘Eating Bitcoin’s Lunch’ as Realized Volatility Sank to its Lowest in Three Years
3625 Total Views

On July 15, Bitcoin (BTC) set another ambiguous record as realized the 30-day volatility for Bitcoin drops to its lowest levels in three years, while Tesla beats performance at over $1,500.

According to data from on-chain analytics resource Skew, 30-day realized volatility recorded its smallest reading since 2017 this week.

Bitcoin Volatility 

Realized volatility refers to volatility as defined by various timespans. Low volatility leads to concern traders and analysts, particularly over extended periods, as a kickback is all too often triggered afterwards.

Earlier this month, 10-day realized volatility hit 20%, its lowest since the period immediately before BTC/USD crashed to $3,100 in December 2018.

Earlier this month, trading volumes were also down at the time, fuelling expectations that volatility would soon return to the market. Since then, Bitcoin’s expected “big move” has yet to appear, with a trading corridor between $9,000 and $9,500 remaining in place.

BTC/USD realized volatility comparison. Source: Skew/ Twitter

For Trader/Markets analyst filbfilb, however, there was lots of potential for a major correction towards $8,000. Specifically, on Tuesday, he told subscribers of his Telegram channel, the 20-week moving average (MA) at $8,200 provided a realistic support level. Alternatively, BTC should reclaim its 50-day moving average, currently close to $9,400. He summarized:

“Overall my position remains very cautious, Until then it’s just sideways chop until proven otherwise so I’m happy to sit that out and wait for confirmation.”

Tesla is Eating BTC’s Lunch

Bitcoin is giving little inspiration, with even Tesla stock beating it on volatility. Skew commented:

“#Bitcoin realized volatility on three years low, Tesla is eating bitcoin’s lunch!” 

Since its recent bottom on March 18, Tesla has surprised by posting various new highs notwithstanding multiple calls for an extensive correction continuing for several months, $TSLA has gained over 300% to trade at $1,516 at press time. Even at $1,200, Tesla’s market cap was over 30% larger than BTC’s.

Tesla stock price eight-month chart. Source: TradingView

Elon Musk, CEO of Tesla, continues to be known as a possible cryptocurrency supporter, with mysterious tweets on topics from Bitcoin holdings to Dogecoin (DOGE) creating considerable interest among users.

No Comments