Bitcoin Volatility Falls To Lowest Since Post-COVID Rebound

Keshav Verma

Last Updated: June 11, 2024 2:27 pm

3 mins read

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Data shows the daily Bitcoin volatility has declined further this week, reaching very low levels not observed in around two years.

Bitcoin 30-Day Volatility Has Come Down To Just 1.9% In Recent Days

As per the latest weekly report from Arcane Research, the 7-day volatility made a low below the 1% mark earlier in the week.

The “daily volatility” is an indicator that measures how the per day returns of Bitcoin have differed from the average during a specific period.

While this period can be of any length, two versions of the metric are particularly natural, the 7-day volatility and the 30-day volatility.

Now, here is a chart that shows the trend in these daily Bitcoin volatilities, as well as the daily returns in the price of the crypto, over the past year.

Looks like the values of the two metrics have been quite low in recent days | Source: Arcane Research's The Weekly Update 41, 2022

As you can see in the above graph, the Bitcoin volatility has been trending down during the last few weeks as the price of the coin has been stuck in consolidation.

The 7-day version of the indicator breached below the 1% level just recently, before forming a low there and rebounding back to the current 1.1% level.

This bottom was the lowest level that the metric has seen since the July of 2020, around when the rebound following the COVID crash took place.

The 30-day Bitcoin volatility is also at a historically low level at the moment as the indicator’s value is just 1.9% right now.

The report notes that while these volatility values suggest a completely stale price recently, it has also been true that the crypto has seen some intraday activity, which the indicator doesn’t account for as it only takes the daily closing prices.

The price of Bitcoin fluctuated by almost 9% in 12 hours on Thursday as the US CPI release went live. But this price change was almost entirely gone by the time the daily close happened.

Historically, periods of very low volatility such as now have been succeeded by those of violent price movement. It now remains to be seen whether BTC observes a similar trend this time as well or not.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.1k, up 4% in the last week. Over the past month, the crypto has lost 2% in value.

The below chart shows the trend in the BTC price over the last five days.

The value of the crypto seems to have continued to consolidate during the last few days | Source: BTCUSD on TradingView

Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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