The market for cryptocurrencies is now going through an unprecedented moment characterised by surprisingly little volatility in Bitcoin, the most popular digital money.
Bitcoin, which is often known for its abrupt price swings, is presently exhibiting a level of steadiness that is unusual for a digital currency.
Investors and market analysts are eagerly monitoring this unexpected calmness and speculating as to whether it signals the beginning of a new era of stability for cryptocurrencies or just the quiet before a worse storm.
Extremely low volatility
Bitcoin’s suppressed volatility has surprised cryptocurrency market observers like Cryptarbitrage and Scott Melker, who both expressed their surprise on social media. Cryptarbitrage pointed out that the at-the-money implied volatility (IV) is just about sustaining double digits.
With predictions and concerns about the potential for it to go below 10%, it is now circling at 11%. The market has been noticeably quiet over the past several Saturdays, which Melker called “boring.”
Although traders must consider volatility since it may lead to positive price changes, the current situation is making them rethink their approaches.
Bearish calm
It’s interesting to note that decreased volatility and bear markets frequently go hand in hand, with suppressed price movements frequently happening during periods of stagnant or declining prices. Currently, the price of Bitcoin is at $26,567, with modest changes over the previous 24 hours in the range of $26,550 to $26,635.
It should be emphasised, nevertheless, that such protracted periods of low volatility typically end with abrupt price changes.
