I am wondering why Bitcoin price is much more volatile than the stock market?
Let's just stick with Bitcoin only. Bitcoin have a market cap close to $1T as we speak and, yet, its price is still so volatile. Is it because the availability of bitcoins in the market is low as most people (especially the new institutional investors) are hodling?
Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
The both of them can’t be compared , stock has been around for years and Bitcoin is just a few years (a decade plus) so it is still growing and we don’t know where we are headed for right now, though I strongly believe that in future we are going to see Bitcoin become something really big.
When the market grows it will become stable to certain extent. Even the stock market can be volatile at times but this is something that happens at times when there is a serious situation taking place that will affect every market and push them to a particular direction, whether up or down.