Frager Factor

Thursday, October 25, 2018

Are pot stocks more volatile than bitcoin? You may be surprised

Bitcoin's 20-day historical volatility is nearly as low as Apple 

Day traders looking to make a quick buck buying and selling bitcoin might be better off switching lanes as volatility in the world's largest digital currency continues to decline. 

In fact, volatility in the No.1 virtual currency is now below some of the biggest and most popular stocks on Wall Street. 

According to data from Cboe Global Markets, the 20-day historical volatility, or HV, of bitcoin has fallen to 31.5%, below that of online retail giant (35%),(AMZN) tech-darling Netflix (52%)(NFLX) and Nvidia Corp, (40%)(NVDA) the chip producer that sells GPU cards to bitcoin miners. Furthermore, it's creeping towards that of tech-behemoth Apple Inc. (29.3%)(AAPL)--one of the most popular stocks on Wall Street. 

When the price of bitcoin was tumbling from its record-high near $20,000 earlier in the year, its 20-day HV, reached 140%. But that pales in comparison to that of cannabis producer Tilray Inc.. The Vancouver-based company became the bellwether for volatility when it went public in July at $17 a share before trading to $300. Tilray's 20-day HV is currently 219%, according to data from Cboe. 

"Perhaps we are witnessing the maturation of a market. It's far too early to declare this the "new normal" but the persistent range over the last few weeks may be hinting at a structural shift. Time will

More from Dow Jones


3 Lessons for Marijuana Stock Investors From the Bitcoin Bust

Marijuana Stocks Are the New Bitcoin

The Tilray toll: 4 warnings for cannabis stock investors about buying into a new market bubble 

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