Wall Street: traders fall in love with Bitcoin and its volatility

Bitcoin is very volatile and that's what makes it a risky investment. It is precisely this high volatility that attracts the "big" Wall Street investors in the crypto market.

The high volatility of Bitcoin pleases!
Last year the price of bitcoin was multiplied by 20 in twelve months to reach $ 20,000 in December, before falling back to around $ 10,000 ... This rise in "roller coaster" bitcoin price scares some investors, but not those on Wall Street.

This volatility of Bitcoin has created a strong attraction for traders in the cryptocurrency market. Traditional markets today lack volatility, and investors are moving towards other riskier investments like Bitcoin.

According to a report by Masao Muraki, an analyst at Deutsche Bank, the correlation between the price of bitcoin and the volatility index (VIX) has increased dramatically during the first three weeks of 2018, which has boosted interest of traders for cryptocurrencies.

Bitcoin, a stimulus for investors
Some Wall Street experts do not hesitate to declare that Bitcoin and cryptocurrencies could stimulate the greed of traders during the year 2018. This is for example the case of the portfolio manager of Federated Investors, Steve Chiavarone , who explained his point of view to Trading Nation on CNBC.

"This is the first sign of greed since the Great Recession, it's indicative of a growing appetite for risk that will drive the stock markets, no matter what happens with bitcoin. "

Cryptocurrencies are gaining more and more ground in the stock market, despite the fact that the SEC still does not allow the trading of ETFs based on bitcoin.