Key Points
Dogecoin (DOGE) is currently exhibiting a lower annualized 30-day actual volatility, also known as historical volatility, at 30%, in contrast to Bitcoin’s (BTC) volatility, which stands at 35%. This data signifies a change in the relative price stability of these two cryptocurrencies.
Realized volatility, measured as the standard deviation of the daily percentage changes in an asset’s price over a specific period, serves as a crucial indicator of price fluctuations in the crypto market. The data from TradingView indicates that DOGE’s price movements have been comparatively less turbulent than those of Bitcoin over the last 30 days.
The divergence in volatility between DOGE and BTC is particularly significant when considering their respective price trends this year. According to CoinDesk data, while Bitcoin has seen a substantial 60% price increase in 2023, DOGE has experienced a relatively modest decline of just over 12%. This divergent performance underscores the evolving dynamics within the cryptocurrency market.
Historically, Dogecoin has been associated with higher volatility than Bitcoin, which has deterred risk-averse investors. This perception is not unfounded, given that Bitcoin has established itself as a macro asset since its inception in 2009, with increasing institutional participation in recent years. On the other hand, DOGE has often been viewed as a light-hearted and non-serious cryptocurrency project since its launch in 2013.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
