In recent months, Bitcoin's volatility has significantly decreased to 70%, indicating market stabilization.
Historical Data on Bitcoin's Volatility
Bitcoin's realized volatility over the last three months has reached 70%, close to the historical minimum of 62% seen on September 23, 2023, with Bitcoin priced at $26,000.
Reasons for Low Volatility
The current low volatility is significantly different from past cycles, where higher fluctuations were common. Now, the asset is becoming more stable, primarily influenced by institutional investors and long-term holders.
Bitcoin's Future in Low Volatility Conditions
Periods of low volatility tend to signify upcoming major price shifts. Analyzing historical trends, it's clear that these phases typically lead to increased market activity, making the current situation one to watch.
Bitcoin's low volatility may indicate approaching changes in the market. This characteristic attracts traders and investors as they evaluate opportunities for long-term strategies.