Bitcoin Volatility Falls To Lowest Since Post-COVID Rebound

According to data, the volatility in Bitcoin daily has dropped further over this week. This is a level that was not seen for around two years.

Bitcoin Volatility for 30-Days Has Dropped to 1.9% in Recent Days

The latest Weekly Report from Arcane Research shows that the volatility of 7 days was below the 1% mark in earlier weeks.

The “daily volatility” is an indicator that measures how the per day returns of Bitcoin have differed from the average during a specific period.

This period is flexible and can take any length. However, there are two types of this metric that seem particularly natural: the 30-day and 7-day volatile versions.

Here is a chart showing the trends in daily Bitcoin volatility and the daily returns to the crypto price over the last year.

Bitcoin Volatility

 Source: Arcane Research's The Weekly Update 41, 2022| Source: Arcane Research's The Weekly Update 41, 2022

The graph above shows that Bitcoin volatility is trending downwards as the price has been held in consolidation.

Just recently, the 7-day indicator fell below the 1% mark. However, it rebounded to 1.1% shortly after.

This was the lowest point the metric had seen since July 2020 when it experienced a rebound after the COVID crash.

The 30-day Bitcoin volatility is also at a historically low level at the moment as the indicator’s value is just 1.9% right now.

The report notes that while these volatility values suggest a completely stale price recently, it has also been true that the crypto has seen some intraday activity, which the indicator doesn’t account for as it only takes the daily closing prices.

Bitcoin prices fluctuated nearly 9% over 12 hours as US CPI released. However, this price fluctuation was nearly gone when the daily close occurred.

In the past, low volatility periods such as these have always been followed by violent price movement. Now it remains to see if BTC follows a similar trend or not.

BTC Prices

At the time of writing, Bitcoin’s price floats around $19.1k, up 4% in the last week. The crypto’s value has fallen 2% over the last month.

Below is a chart showing the BTC price trend over the past five days.

Bitcoin Price Chart

Cryptocurrency seems to have been consolidating over the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Image by Dmitry Demidko, Charts from and Arcane Research

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