At the “Bitcoin for Corporation 2025” event, XBTO investment company manager Javier Rodríguez-Alarcón held a meeting to break down one of the most frequent criticisms of major digital currencies. The volatility at that price is inherently bad.
“Everyone talks about volatility as a big issue,” Rodriguez Alarcon said. Risk is capital destruction. ”
XBTO Executives deepened it Bitcoin’s volatility is higher than that of other assetsS&P 500 Stock Index (SPX), etc. However, when the end of the action is observed, it presents an important nuance.
On bad days, including the worst 5% in history, BTC averages 5.6%, while SPX decreases by about 1.7%. However, in the highest five days, digital currencies rose by an average of 6.2% and stock indexes mentioning just 1.6%.
From a quantitative approach, this means that Bitcoin yield distribution is biased towards rising. Therefore, despite the strong fall, it is explained that, as the following graph shows, maintains a long-term upward trend in its history.
«BTC may be more volatile than other assets, but there is no further risk in terms of capital destruction. And if you know how to use it, that’s a great advantage. “
Javier Rodríguez-Alarcón, Commercial Director and Head of Asset Management at XBTO.
For Rodríguez-Alarcón, this action gives positive hope for the future of its prices. “I don’t think there’s any need to convince anyone here. We all believe it’s the hypothesis that BTC will rise,” he added.
The specialists also revealed this Increased market investments have caused a progressive decline in Bitcoin volatility over timeas shown below. This is due to the fact that more investors are maintaining long-term holdings, which contributes to the stability of the highest prices.
“Bitcoin is a winged digital gold,” says XBTO manager
In his speech, Rodriguez Alarcon emphasized this. Bitcoin is becoming an increasingly attractive asset for the Ministry of Corporate Treasurybecause of its unique attributes. “I like to call it winged digital gold,” he said on three reasons: rarity, fluidity, and his nature without borders.
With the shortage, he recalls that his broadcasts were cut in half every four years, with only 21 million btc being present when it was finished.
In terms of liquidity, he emphasized that he has a negotiated volume at a level of large action, such as Apple and Microsoft, and has particular advantages. “We finally have assets that can increase risks and Sundays before the news. That’s incredible.”
But that’s what I think is even more important Bitcoin can work without geographical barriers from its distributed network. This is characterized by not providing a large variety of assets, such as bonds and behavior. It’s “a huge advantage that we can take advantage of,” he emphasizes.
There is a passive and aggressive strategy for exchanging bitcoin
Besides maintaining Bitcoin as a passive reserve, Rodriguez-Alarcon believes it would be useful to complement this strategy in the active marketand uses a variety of tools, including the futures market. “Instead of leaving unused coins behind, you can generate performance,” he said.
For example, it shows the possibility of using sales options or purchasing options to accumulate more when prices drop. This requires greater training, but it can be helpful to take advantage of this type of tool in the market.
“Everyone thinks of one thing. You have BTC as a passive asset. But if you only have assets and do nothing with him, what are you doing?” he asked. From his perspective, Bitcoin’s inactive tenure is compared to “leaving away from the empty house or taking action without working.” To be precise, XBTO is dedicated to aggressive management of Part 3 capital.
In any case, long-term Bitcoin investors ( Hodler) Historically, they have yielded better than those who engage in active sales operations. This was due to a sustained upward trend in prices, resulting in a better scenario than trying to find a low point to buy and sell.
Comments will be made as reported by Cryptootics. Bitcoin demand, which increased the price to $100,000 this week. (USD), the largest in two months, leaving under 10% of the USD 109,300 registered in January.