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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Tuesday, February 28, 2023

Bitcoin And Foreign Exchange, FX Volatility, Risk


Bitcoin's price is much more volatile than EUR/USD, USD/JPY foreign exchange, foreign currency pairs.

Bitcoin's volatility, price risk is even greater than USD/RUB or USD/TRY FX crosses.

Although Bitcoin is widely regarded as a cryptocurrency, it is officially designated by the Commodities Futures Trading Commission as a commodity.

Apparently, CFTC thinks that due to Bitcoin's high energy consumption, Bitcoin is similar to energy commodities.


In the foreseeable future I forecast Bitcoin's volatility or price risk to remain far above that of EUR/USD, USD/JPY and USD/GBP.

In 5 years', time with the entry of even more hedge funds, asset managers and pension funds into the cryptocurrency space I expect Bitcoin's risk to be much less than the foreign exchange USD/RUB or USD/TRY FX pairs.

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