Bitcoin and Ethereum Now Less Volatile than Oil Amid Low Liquidity

• Bitcoin (BTC) and Ethereum (ETH) are now slightly less volatile than oil as both assets continue to trade sideways this summer.
• The volatility index of BTC and ETH dropped to “multi-year lows” while oil remains at 41%.
• Analysts attribute the decline in volatility to a combination of wider macroeconomic factors, government policies, increased liquidity, and maturing asset.

Bitcoin & Ethereum Are Now Less Volatile Than Oil

According to new research from Kaiko, the notorious trend of cryptocurrency volatility has taken a sharp decline due to several factors ranging from government policies to wider macroeconomic factors. This has caused the 90-day volatility index of Bitcoin (BTC) and Ethereum (ETH) drop to “multi-year lows” at 35% and 37%, respectively, making them less volatile than oil which is currently at 41%.

Historical Volatility Trends

Historically, BTC and ETH have remained more volatile than other assets such as gold or Nasdaq. Last year saw both assets lose over 55% of their market values following a rocky patch in the woods for the entire ecosystem. However, this year marks new beginnings for cryptocurrencies with BTC recording an 80% surge YTD creating another huge leap in volatility.

Factors Behind Reduced Volatility

The reduced volatility in BTC and ETH is attributed by analysts at Kaiko due to a combination of wider macroeconomic factors such as geopolitical tension between Russia & Ukraine leading to global sanctions & China’s poor reopening after economic gripping Covid measures. They also cite increased liquidity on-chain as another factor behind the drop in volatility alongside the asset maturing over time as it gains more adoption into mainstream markets.

Oil Remains Most Volatile Asset

Despite Bitcoin & Ethereum becoming less volatile than oil for the first time ever, oil remains one of the most volatile assets evaluated by Kaiko with its 90-day volatility index standing at 63% last July 2022. Risky assets often tend to be characterized by high levels of volatility which opens investors up to higher risks but can also present potential rewards if managed correctly.


This summer marks a milestone moment for Bitcoin & Ethereum with their respective 90-day volatilities dropping below that of oil prices – a feat that was never achieved before now. While analysts attribute this change in trend mainly to wider macroeconomic factors, government policies & increased liquidity on-chain; it is also worth noting that these digital assets have matured significantly since their formative years making them much less volatile compared before