Bitcoin’s Volatility Falls to Lowest in a Year
According to senior market strategist at Creative Planning, Charlie Bilello, the 12-month volatility of the first cryptocurrency has recently hit a 12-year low.
This metric has shown a consistent downward trend since January 2012, when it was at 179%, dropping to 45% at the start of this year.
A higher volatility rate indicates greater price fluctuation and unpredictability in the market, while a lower rate suggests more stable trading conditions.
This could mean that there are more long-term holders in the market, as noted by CryptoQuant analyst Bradley Park.
During an episode of the What Bitcoin Did podcast in mid-January, Galaxy Digital’s head of research Alex Thorn and Bloomberg stock analyst James Seyffart discussed how the launch of spot Bitcoin ETFs in the US could further reduce market volatility.
Thorn mentioned that a significant amount of BTC would be in the hands of investment advisors who are not interested in day trading. Seyffart agreed and explained how portfolio managers would be able to decrease volatility while maintaining returns.
