Bitcoin Price Volatility Hits Record Lows
The price volatility of the largest cryptocurrency by market cap, BTC, has tightened around $29,000, reaching its lowest levels in history over the past 30 days.
Bitcoin Price Volatility Hits Record Lows
According to data from The Block, BTC has exhibited notably subdued movement, with a volatility measure of just 15.5% over the past 30 days. For comparison, the average monthly volatility in 2022 was 61.4%. In 2023 so far, this figure averages at 43.8%.
Chart of Bitcoin price volatility over the years. Source: The Block
The low volatility index also reflects a decline in BTC trading volume, as market activities have been relatively thin. According to The Block, BTC trading volume stood at only $1.88 billion on August 13th.
Amid the current stagnation, Bitcoin has hovered around the $29,000 mark for the past month, currently priced at $29,371, representing a 0.7% increase over the past 7 days.
Bitcoin price chart for August 15, 2023, on Binance (1D timeframe).
However, there are signs of market recovery following news that the Fed will introduce new monitoring frameworks for cryptocurrencies, coupled with the July CPI adjusting lower than expected. According to CoinShares, the market has witnessed inflows of $144 million over the last three weeks.
"The data shows a growing optimism towards Bitcoin and the cryptocurrency market despite declining trading volumes," CoinShares commented.
In addition, market leader MicroStrategy disclosed in July that it purchased an additional 467 BTC for $14.4 million, raising the total Bitcoin holdings in its treasury to 152,800 BTC. This demonstrates confidence in the coin's potential despite market uncertainties.
