TechFlow reported, Matrixport released a chart today showing that over the past five years, Bitcoin's 30-day realized volatility has averaged 58%. Typically, volatility exceeds this average during bull and bear markets, such as the bull run in 2020/2021 and the bear market in 2022. However, recent volatility has been unusually low—an important observation given that Bitcoin's volatility usually amplifies during market rallies or sell-offs.
The introduction of Bitcoin spot ETFs has seemingly played a significant role in dampening Bitcoin's volatility. Lower volatility allows institutional investors to take on more risk, and combined with Bitcoin’s strong performance in 2023 and 2024, could continue attracting more capital from Wall Street. As institutional buying absorbs market downturns, this trend may further stabilize Bitcoin’s price and consequently suppress its volatility.
