Bitcoin’s Volatility Reaches Lowest Level in History

Bitcoin’s 30-day price volatility, measured on an annualized basis, has reached a record low of 15.5%.

For context, the average 30-day annualized volatility for Bitcoin was 61.4% in 2022. In the ongoing year, 2023, this measure has averaged at 43.8%.

This reduced price fluctuation aligns with a decline in trading volume, as only $1.88 billion worth of Bitcoin was transacted on major exchanges on Sunday. This decrease suggests diminished trader engagement, signaling waning interest.

“The 30-day realized volatility has dropped below the 22v level due to subdued market activity,” noted the Genesis trading desk in a memo on Monday.

Amidst this stagnation in activity, the cryptocurrency has predominantly maintained a flat value above the $29,000 mark for over a month. As of 2:15 p.m. ET, the largest digital asset globally was trading at $29,488, reflecting a 0.5% increase in the past 24 hours, as per CoinGecko.

Nevertheless, there are indications of a potential shift. Following slightly lower-than-expected U.S. inflation data, Bitcoin investment products experienced inflows of $29 million last week. A report from CoinShares highlighted a rebound in fund flows, reversing a three-week streak of $144 million outflows.