Bitcoin Has Been Less Volatile Than Tesla Stock for Months

Bitcoin is often criticized for being overly volatile, but it's been a sea of calm compared with Tesla stock in recent months.

AccessTimeIconSep 28, 2020 at 12:29 p.m. UTC
Updated Sep 14, 2021 at 10:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) is often criticized for being overly volatile, but it's been a sea of calm compared with Tesla stock in recent months.

  • Tesla (TSLA) has been seeing bigger daily percentage moves since the end of June, according to 30-day realized volatility data.
  • Further, the volatility gulf between the two assets has been widening in recent weeks.
  • Bitcoin witnessed a below-1.25% daily move in 14 out of the last 27 days, according to data from TradingView – almost 52% of the time.
  • However, Tesla only achieved sub-1.25% moves 6% of the time over the same period, data source Skew tweeted early Monday.
Volatility of bitcoin price and Tesla stock
Volatility of bitcoin price and Tesla stock
  • "People always assume bitcoin is incredibly volatile, but it's not more volatile than many popular tech stocks," Skew co-founder and CEO Emmanuel Goh told CoinDesk.
  • Looking at the price charts, both bitcoin and Tesla have witnessed two-way business this month and formed contracting triangles (narrowing price ranges), as shown below.
  • However, Tesla has seen a month-to-date price decline of 18% – far worse than bitcoin's 6% drop.
Daily charts for Tesla and bitcoin
Daily charts for Tesla and bitcoin
  • Bitcoin's 30-day historical volatility, which measures the price action realized in the past 30 days, has been flatlined near 55% (annualized) since Sept. 3.
  • Further, its 30-day implied volatility – that is, investors' expectations of how volatile price will be over the next four weeks – has declined to 44%, the lowest level in nearly two years.
  • In the past, big moves have been preceded by an implied volatility reading of less than 50%.
  • At press time, the cryptocurrency is currently trading at $10,911, representing an over 2% gain on the day.
  • The weekly chart MACD histogram, an indicator used to identify trend changes and trend strength, has crossed bearish below zero.
  • As such, the cryptocurrency may face some chart-driven selling pressure in the short term.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about