Bitcoin ($BTC) is experiencing a significant decrease in its volatility. As per the data from Glassnode, Bitcoin’s volatility has reached multi-year lows, triggering speculations about a likely major development in the next weeks. The crypto intelligence platform took to its official X account to share the present downturn in Bitcoin volatility.
Bitcoin’s Volatility Collapse to 23.42%, Reaching Near Historical Lows
Glassnode’s data indicates a massive dip in Bitcoin’s volatility as it has touched multi-year lows. The respective development points toward a potential big turning point in the upcoming weeks. Particularly, the 1-week realized volatility of the top crypto asset has plunged to 23.42%. This signifies that the volatility is nearing its historically low levels. Before this, Bitcoin’s volatility slumped below this spot in October and November, at 22.88% and 21.35% respectively. Based on historical data, such volatility compressions have led to huge price swings.
Realized volatility gauges the fluctuations in Bitcoin’s price over a particular period. This metric’s dip to enormously low levels often denotes a market consolidation phase. Hence, this can pave the way for substantial breakouts in any direction. Interestingly, the present phase of decreased realized volatility parallels almost all-time highs in Bitcoin’s price stability. At the moment, the chief crypto asset is reportedly changing hands above $80,000. Keeping this in view, the market onlookers and traders are looking for the signs of a potential correction or a breakout.
1-Week Implied Volatility of Bitcoin Options Dips to 37.39%
According to Glassnode’s data, coinciding with the realized volatility, the 1-week implied volatility of Bitcoin has also declined to 37.39%. This highlights one of the lowermost levels throughout recent years. Thus, both the implied volatility and realized volatility are showing historic low levels, underscoring a precarious position. Even then, Bitcoin’s present calm phase is not likely to sustain for long.
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Umair Younas is a cryptocurrency-related content writer linked with this work since 2019. Here, at Blockchainreporter, he serves as a news and article writer. He is a crypto, blockchain, NFTs, DeFi, and FinTech enthusiast. He has strong command over writing authentic reviews about brokers and exchanges and he has collaborated with our education team to write educational content as well. He has a dream to raise awareness among people about digital currencies. His works are well-researched and brimmed with information hence they provide fresh insights. Stay tuned to his posts if you want to stay up-to-date with the crypto-verse.
