Ripple rose in price by 60% in three days, and BTC price volatility turns out to be lower than that of many stocks
Ripple grows 60% in price in three days
XRP, the third-largest cryptocurrency in terms of capitalization, gained 63% in price in three days and came close to $0.5 per coin.
On Sunday, the token price reached $0.49567, which was a record high since June 2019. XRP has more than doubled in price since early November. Other major cryptocurrencies are also in positive territory: Ethereum and Litecoin added 32% in value in 7 days, Cardano showed more than 50% growth, and Stellar — 37%.
Altcoins are strengthening in price amid BTC rate approaching its historical maximum. The main cryptocurrency traded at $18,945 last Saturday, less than $1,000 below its all-time high of $19,891.
Research: BTC price volatility is lower than that of many stocks
Investment management company Van Eck has published a study showing that bitcoin is less prone to fluctuations than a quarter of S&P 500 stocks.
Since the beginning of the year, quotes of 29% of stocks have shown greater volatility than the first cryptocurrency, and 22% — over the past 90 days. Although Bitcoin is considered a “nascent and volatile asset outside of the traditional stock and capital markets” reality shows that it trades with volatility comparable to the world’s largest stocks, analysts say.
Grayscale: investors seek in Bitcoin protection against inflation
According to Michael Sonnenschein, managing director of Grayscale Investments, Bitcoin is no longer a temporary phenomenon.
Investors no longer believe that BTC has failed as a currency as we don’t use it to buy a cup of coffee. The coronavirus pandemic this year has become another key factor for the flow of funds into cryptocurrency, he said.
“I think investors understand today that buying Bitcoin and putting it in their portfolio is meant to be a store of value, inflation hedge, a digital gold, a digital form of money that is much better suited to the digital world we live in today versus historical stores of value like gold which would have been certainly much more applicable to a world characterized by physical exchanges. They view it as one of the most important next steps in the evolution of money and what constitutes a store of value,” Sonnenschein said.
Grayscale manages nearly $11 billion in cryptocurrency.