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Bitcoin (BTC) Volatility Drops to Historic Low, Turbulence Coming?

Fri, 08/04/2023 - 13:00
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Vladislav Sopov
Bitcoin (BTC) surprisingly becomes less volatile than gold, NASDAQ index and S&P 500, but is this the calm before the storm?
Bitcoin (BTC) Volatility Drops to Historic Low, Turbulence Coming?
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Despite the overall recession on cryptocurrency markets caused by another phase of regulatory attacks, unprecedentedly low volatility remains the key factor that influences the performance of Bitcoin (BTC) and major altcoins in Q3, 2023.

Bitcoin (BTC) volatility has never been lower in its history

The 30-day estimated Bitcoin (BTC) volatility - the average standard deviation of daily returns - dropped to the lowest levels since the Bitcoin (BTC) network launch. In the last 30 days, this indicator plummeted to 0.77%. As per the tracker by Buy Bitcoin Worldwide project, this is an absolute ATL for the largest cryptocurrency.

Bitcoin (BTC) has never been less volatile
Image by Buy Bitcoin Worldwide

The previous low was registered in July 2020 below 1.5%. For the 60-day estimated Bitcoin (BTC) volatility chart, the recent local low was witnessed in January 2023 below 1.37%. Now, this indicator sits at 1.77%.

For Ethereum (ETH), the second largest cryptocurrency, both charts - the 30- and 60-day estimated volatility indicators - are also at historic lows and keep shrinking.

Litecoin (LTC), the "Digital Silver" and 11th largest cryptocurrency, was less volatile in 2016: its current volatility indicators are two to three times higher than they were seven years ago.

As covered by U.Today previously, major altcoin XRP witnessed an unprecedented volatility drop after its impressive 75% rally.

XRP Sees Catastrophic Drop in Volatility: What's Happening?

The upsurge in price was catalyzed by Ripple's interim victory in the SEC's legal case.

Turbulence coming?

As calculated by the experts of K33 Research (formerly Arcane), the five-day volatility of Bitcoin (BTC) surprisingly plummeted lower than that of gold (XAU) and the NASDAQ and S&P 500 indexes. On such a short timeframe, the ongoing drop is the third largest since Black Friday in Crypto of 2020.

Analysts also indicated that after such impressive volatility dropdowns, periods of market turbulence usually happen. As such, both bulls and bears should be prepared for incoming rapid moves.

Meanwhile, Bitcoin (BTC) yet again failed to protect the crucial $30,000 level. By press time, it is changing hands at $29,192 on major spot exchanges.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)