COINNEWSBitcoin Volatility Declines: A Bitwise CIO Perspective
Matt Hogan, chief investment officer at Bitwise, stated in an article for The Wall Street Journal that the declining volatility of Bitcoin signals the asset's gradual maturation, not a weakening of its position.
Digital Gold Dynamics
Over the past decade, BTC's annualized volatility has dropped from 66% to 44%. According to the expert, this process is part of cryptocurrency's path toward becoming 'digital gold.' In the future, the asset's volatility could even fall below that of the Nasdaq-100 index.
Investment Appeal
Hogan highlights the high effectiveness of portfolio diversification. Adding just 1% Bitcoin to a classic 60/40 asset allocation model hardly increases overall investment risk. At the same time, this strategy can significantly boost the portfolio's total return.
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