$BTC Volatility in financial markets has risen unprecedentedly since the beginning of this month, amid escalating trade tensions and the economic policies pursued by US President Donald Trump. According to data from TradingView, the S&P 500 index, which is the benchmark for the performance of US stock markets, witnessed a massive jump in realized volatility over a seven-day period, rising from 50% to 169%, the highest level since the COVID-19 crisis in 2020.
On the other hand, the Bitcoin (BTC) currency also saw an increase in its volatility, as its realized volatility doubled to 83%, but it remained much lower than the volatility experienced by the US stock markets, reflecting the growing interest in Bitcoin as a low-risk hedge against market fluctuations.
On the other hand, increasing fears of trade wars have led to a significant decline in the attractiveness of US assets. Although investors typically direct their money towards Treasury bonds and the dollar in times of crisis, the market has seen a notable shift, as investors began to dispose of Treasury bonds, leading to a rise in yields on US bonds, while the dollar index fell to its lowest levels since late September 2023. In this context, James Butterfill, head of research at CoinShares, confirmed that the stock markets have seen a sharp increase in volatility, surpassing Bitcoin, which experienced a decline in its volatility, pointing out that this raises questions about whether investors should trust traditional assets that are significantly affected by political decisions, or turn towards more resilient assets like Bitcoin.
