Recent Bybit report indicates that Bitcoin (BTC) volatility has reached record low levels, connected to increasing ETF inflows. This has led to changes in price behavior and increased stability in the cryptocurrency market.
BTC Volatility Decline
The report states that BTC’s implied volatility has dropped to 28%, with realized volatility hitting levels not seen in nearly 20 months. This decline reflects the growing maturity of the asset and its strengthened market position.
Impact of ETFs on BTC Market
The analysis shows a correlation between the launch of spot ETFs in January 2024 and the subsequent volatility decline. ETFs contribute to more stable price movements for BTC and provide support from institutional investors during downturns.
Comparison with ETH Volatility
While BTC experiences historical stability, Ethereum (ETH) volatility does not follow the same pattern. ETH's volatility levels continue to rise, indicating significantly higher instability compared to BTC, alongside notable price fluctuations in Solana.
The Bybit report highlights the significant decrease in BTC volatility and the impact of spot ETFs on price stabilization. These changes may indicate further evolution and strengthening of the cryptocurrency market.
