Bitcoin Volatility Falls Below Kospi, Highlighting Hedge Role Amid Geopolitical Tensions

Bitcoin's short-term volatility has dropped below that of South Korea's stock market, highlighting the token's relative stability as geopolitical tensions in the Middle East drive bigger swings in traditional assets.

CoinDesk reported on April 21 that Bitcoin's 30-day realized volatility was about 42%, lower than recent readings for South Korea's Kospi index and Pakistan's KSE100 index. The Kospi's volatility was around 50%, and the KSE100 was at a similar level.

Bitcoin traded in a relatively narrow range of about $65,000 to $75,000 during that period. By contrast, stocks in South Korea and Pakistan became more volatile as Middle East tensions intensified and energy prices jumped.

South Korean equities were especially sensitive to oil-price swings because of the country's heavy dependence on energy imports. The Kospi fell from around 6,340 in late February to about 5,000 by the end of March, then rebounded to recover above 6,300.

Markets have pointed to rising inflows into U.S.-listed spot Bitcoin exchange-traded funds as a factor behind the decline in volatility. As institutional money has increased, price swings have gradually narrowed.

CoinDesk said the trend is renewing attention on Bitcoin's role as a hedge asset. Even as war and other macro factors rattled traditional assets, Bitcoin maintained a relatively stable price pattern.