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Bitcoin ($BTC) is experiencing a significant decrease in its volatility. As per the data from Glassnode, Bitcoin’s volatility has reached multi-year lows, triggering speculations about a likely major development in the next weeks. The crypto intelligence platform took to its official X account to share the present downturn in Bitcoin volatility.
#Bitcoin’s 1-week realized volatility has collapsed to 23.42%, nearing historical lows. In the past four years, it has dipped lower only a few times – e.g., Oct 2024 (22.88%) & Nov 2023 (21.35%). Similar compressions in the past led to major market moves: https://t.co/B67xEqy8Rm pic.twitter.com/XRaGCNXR6d
— glassnode (@glassnode) February 21, 2025
Bitcoin’s Volatility Collapse to 23.42%, Reaching Near Historical Lows
Glassnode’s data indicates a massive dip in Bitcoin’s volatility as it has touched multi-year lows. The respective development points toward a potential big turning point in the upcoming weeks. Particularly, the 1-week realized volatility of the top crypto asset has plunged to 23.42%. This signifies that the volatility is nearing its historically low levels. Before this, Bitcoin’s volatility slumped below this spot in October and November, at 22.88% and 21.35% respectively. Based on historical data, such volatility compressions have led to huge price swings.
Realized volatility gauges the fluctuations in Bitcoin’s price over a particular period. This metric’s dip to enormously low levels often denotes a market consolidation phase. Hence, this can pave the way for substantial breakouts in any direction. Interestingly, the present phase of decreased realized volatility parallels almost all-time highs in Bitcoin’s price stability. At the moment, the chief crypto asset is reportedly changing hands above $80,000. Keeping this in view, the market onlookers and traders are looking for the signs of a potential correction or a breakout.
1-Week Implied Volatility of Bitcoin Options Dips to 37.39%
According to Glassnode’s data, coinciding with the realized volatility, the 1-week implied volatility of Bitcoin has also declined to 37.39%. This highlights one of the lowermost levels throughout recent years. Thus, both the implied volatility and realized volatility are showing historic low levels, underscoring a precarious position. Even then, Bitcoin’s present calm phase is not likely to sustain for long.
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