Altcoins News

Story: Bitcoin Volatility Drops to Lowest Level Since 2023, Mirroring Wall Street Trends

By MikeT

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Bitcoin’s Volatility Hits Multi-Year Lows. According to the BVIV index from Volmex, which measures Bitcoin’s 30-day implied volatility, BTC's…

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What’s Behind the Calm?. One explanation is that traders aren’t rushing to hedge their bets despite ongoing economic…

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A Major Shift for Bitcoin. Historically, Bitcoin's volatility and price have moved together—when the price goes up fast,…

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Calm Before the Storm?. Still, not everyone sees this calm as a good thing. Low volatility could be a sign that investors…

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What’s Next?. For now, Bitcoin continues to trade in a tight range between $110,000 and $120,000.

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Bitcoin (BTC), the world’s largest cryptocurrency, is showing signs of calm unlike anything we’ve seen in almost two years.

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This unusual calm is a big change for a digital asset known for wild price swings. But what’s going on behind the scenes shows that Bitcoin may be evolving—and starting to behave…

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According to the BVIV index from Volmex, which measures Bitcoin’s 30-day implied volatility, BTC's volatility has dropped to an annualized 36.5%.

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Implied volatility is an estimate of how much an asset is expected to move in the future. It's often used by traders to price options—financial contracts that allow bets on…

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This is surprising because Bitcoin prices have been climbing significantly since November 2024, moving from $70,000 to over $110,000.

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One explanation is that traders aren’t rushing to hedge their bets despite ongoing economic concerns like inflation or slowing growth (often referred to as stagflation).

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Another possible reason is the rise of new financial products, like structured investments that involve selling call options.

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This trend is very similar to how traditional stock markets behave. For example, the VIX index—which tracks expected volatility in the S&P 500—also dropped after a recent…

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Historically, Bitcoin's volatility and price have moved together—when the price goes up fast, volatility usually spikes, and when the price crashes, it spikes again.

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This is a big shift in how the market views and trades Bitcoin. It suggests that more investors now see it as a long-term asset rather than just a speculative tool.

The Currency Analytics

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