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Bitcoin Volatility Hits 563-Day Low

by Anna Avery
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Vetle Lunde, the head of research at K33 Research, pointed out in an astonishing Crypto X post on Apr. 30 that the cryptocurrency’s 7-day volatility had just hit a 563-day low.

Meanwhile, 30-day Bitcoin price volatility against the US dollar has steadily ratcheted down. BTC volatility has been receding since 2011 and since 2021, according to data from BitBo and TheBlock.

Low Bitcoin Volatility: Bullish or Bearish for Price?

Low volatility can be bearish for cryptocurrencies and stocks. That’s because during bull markets prices tend to swing upward with more volume and correct more suddenly.

As a result, some traders may interpret low volatility as a sell or wait signal. But, Bitcoin’s chart technicals achieved this landmark record during a fierce BTC rally on Wall Street funds and crypto exchanges.

So, it may be difficult to fit this into the bigger picture as a bearish sign.

Instead, low BTC volatility may simply be the result of Bitcoin now having such a high market cap, near the $2 trillion notch to start May, that liquidity runs smoother. Whale-sized participants no longer have the volatile splash effect on the overall market they once had.

Fidelity: Many Stocks More Volatile Than BTC

Overall, that’s a bullish milestone for Bitcoin. It means the network has grown in capitalization at such a startling pace that now it doesn’t bob up and down so much like a small boat in the ocean. Instead, it moves more like a large, well-keeled, and stately craft.

A Fidelity Digital Assets research study from last year pointed out some interesting facts about BTC’s price fluctuations, such as, “Bitcoin is volatile, but less so than many popular mega-cap stocks.”

The Boston-based mega investment corporation also said, “Bitcoin is currently less volatile than 33 S&P 500 stocks, and as recently as late 2023, there were 92 S&P 500 stocks more volatile than bitcoin.”

The report nailed one projection: “Bitcoin’s volatility has declined and is expected to continue doing so.” Meanwhile, the crypto’s price has been rapidly increasing after the early April low of under $75,000 and is knocking on the $100,000 door.

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