Throughout 2020, market volatility was the premier financial story. Crashes and rallies in everything from Bitcoin to crude oil became a part of everyday life. Now, it appears as though the game has changed. 

The introduction of vaccines, overall COVID-19 market fatigue, and the recession of political uncertainty has sent pricing volatility to near pre-COVID lows. Currently, the CBOE Volatility Index (VIX) is trading at 17, just above last February’s low of 15.8. For reference, here are a few notable sample VIX readings from the past 12+ months:

Month                                    VIX                                   Event

March 2020                              66                                  COVID-19 Onslaught

October 2020                           38                                 U.S. Election

January 2020                            33                                  Siege On U.S. Capitol   

Of course, not all assets have been quiet. Stocks such as GameStop have made headlines, as has the meteoric rise in cryptocurrencies. But, for now, volatility is trending downward. 

So, can anything upend the relative stability? Sure. The emergence of a deadlier COVID-19 variant, more government lockdowns, or an unexpected end of dovish monetary policy will spike the markets. Are these items likely to occur? The answer to that question is debatable. However, institutional money is sending the VIX to pre-pandemic lows ― I guess all is well.

Volatility Recedes, Bitcoin Consolidates Near $60,000

It’s been a solid week for Bitcoin (BTC). Values are up roughly 11% and price is on the doorstep of $60,000.

Overview: As we kick off Q2 2021, it’s tough to predict a reversal in either the stock or crypto markets. For the time being, taking a buy-and-hold approach to the U.S. indices and the leading cryptocurrencies isn’t too bad of a strategy.