Jim Bianco Profile picture
Macro investment research at https://t.co/hQqAza8GGP Our total return index is at https://t.co/vta9eqevnU The ETF WTBN tracks our Index. biancoresearch.eth

Oct 20, 2022, 8 tweets

1/7

The old trader adage is to "never short a dull market," As this chart shows, this now applies to bitcoin.

Realized volatility (that is, backward or actual volatility) is at a 2+ year low and one of the lowest readings ever.

2/7

Bitcoins' price is trending sideways (black rectangle) leading to falling volatility.

3/7

Never short a dull market might really apply for ETH.

Post-merge, and post-merge hype, its realized volatility has collapsed to its lowest reading in at least 5+ years.

4/7

ETH's price has literally fallen asleep (black rectangle) in the last month or so.

No movement = record low volatility.

5/7

But what is NOT a dull market and should not be lumped into the same category as the two charts above is the S&P 500.

Its realized volatility is a very high reading relative to the last 10 years.

6/7

Markets bottom on apathy, not excitement. BTC and ETH have apathy.

The S&P 500 is nearly the opposite, as prices move around like a video game.

This might also be another sign of the TradFi/Crypto tight relationship breaking

If so, this is long-run bullish for crypto.

7/7

"Institutional adoption" of crypto in the last few years has not been good. Crypto has become a high-beta version of the S&P 500.

The real bull story in crypto is it represents something more/different than high beta stocks.

Diverging volatility might signal this change.

Contrarians note ...

Many of the replies to this thread are getting a fair amount of pushback... I'm pumping my bags, the next move is to $8k, and so on.

If you are bullish, this is better than everyone agreeing a moon is coming.

Share this Scrolly Tale with your friends.

A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.

Keep scrolling