Bitcoin remains in a correction phase following a new all-time high, eliciting interest from analysts and investors.
Decrease in Bitcoin Volatility
Following the new all-time high above $123,000 in July, Bitcoin (BTC) has experienced significant pullbacks. As of now, Bitcoin's implied volatility index (BVIV) has dropped to its lowest level since September 2023.
Historical Data and Possible Growth
Experts note that this situation indicates Bitcoin's bullish potential. The last time the BVIV index hit such a low level was in September 2023, after which BTC's price increased from around $26,000, nearly doubling in value. Currently, the 30-day implied volatility index for BTC stands at 40.84, below the threshold of 45, which has historically signaled accumulation periods.
Behavior of Short-term Investors
According to Glassnode, even short-term investors are holding onto their Bitcoin. The Market Value/Realized Value (MVRV) ratio for short-term investors currently stands at 1.19, below the cycle peak of 1.33 recorded in November 2024. This suggests investors are avoiding speculative risks, preferring to wait for further gains.
The decline in Bitcoin's volatility and the behavior of short-term investors may indicate preparations for the next bullish trend. Analysts continue to monitor developments in the market.
