Kraken publishes September Bitcoin volatility report after volatility downtrend breaks
Kraken publishes report arguing that Bitcoin's volatility is declining over time, making it more attractive as a store of value.
On October 12, 2020, Kraken publishes September Bitcoin volatility report after volatility downtrend breaks. Kraken publishes report arguing that Bitcoin's volatility is declining over time, making it more attractive as a store of value.
The declining volatility thesis was important for Bitcoin's institutional adoption narrative. One of the primary objections that conservative investors and corporate treasurers raised about Bitcoin was its extreme price swings—50% corrections or 100%+ rallies in short periods made Bitcoin seem unsuitable for portfolios that required stable value or for treasury management where capital preservation was paramount.
Kraken's research suggested that Bitcoin's wild volatility was a characteristic of its early adoption phase rather than an inherent feature, and that as Bitcoin's market capitalization grew and ownership became more distributed, price movements would continue moderating toward levels more comparable to other investable assets.