The volatility of Bitcoin reduced from April 2020, then the volatility was of 10.86%. At the time of writing, the volatility of Bitcoin is at the level of a one-year low of 1.49%.
The volatility of Bitcoin has already demonstrated a similar decline in September 2019 during the release Bakkt. Then the price of Bitcoin fell from $9000 to $7000 in one month.
Analytical platform Skew, demonstrates that 10-day realized volatility of Bitcoin equal to 20%. In this month the volatility of Bitcoin fell 35%.
The beginning of the lower volatility recorded since April 2020. This indicates that the inactivity of traders. A recent report by CoinGecko underlines that the trade volume of Bitcoin fell by 20 percent in the second quarter of 2020.
In addition, the technical Director Glassnode recently shared a tweet about the fact that in 2020 was displaced only 27% of all bitcoins in circulation. The remaining 73% of the existing bitcoins remain intact in 2019.
Low volatility = high level HODL-ing?
If you compare the current decline in the volatility of bitcoin with the previous one, the conclusion that will follow shortly price reduction, suggests itself.
The last time a sharp decline in the volatility of Bitcoin was preceded by a significant reduction in prices. Then the price of Bitcoin fell from
In November 2018 the price of bitcoin fell to a low of 3713 dollars per month. COSO further stated that the last time the realized volatility of Bitcoin reached this level, the November sale was in full swing.