The Nasdaq 100 outperformed Bitcoin for Q3. Nasdaq 100: +8.82% Bitcoin: +6.40% Bitcoin is now a macro asset ("boring") as more institutions adopt it and banks sell its volatility for yield.
Bitcoin volatility has been in a severe bear market all year, with 30-day realized vol down 70% (Image 1) and 90-day realized vol down 50% (Image 2) from peak to trough.
Even the imitable @MicroStrategy, $MSTR, has suffered from the collapse in volatility; 90-day realized vol is down over 50% YTD!
And its stock price has suffered as a result. $MSTR is only up 7.4% YTD while Bitcoin is up over 22%.
And yet, people still think, all you have to do is 'buy Bitcoin!' Wrong. If your strategy relies on your investment(s) demonstrating characteristics of elevated volatility, then simply buying the underlying asset is ineffective.
Volatility for Bitcoin is in secular decline. As banks and asset managers continue to launch "yield" products, expect volatility to collapse further. https://finance.yahoo.com/news...
