Bitcoin’s realized volatility drops to hit new low – What’s next? – BitRss

• Bitcoin’s 1-week realized volatility dropped to 23.42%
• Past volatility compressions have often led to sharp breakouts

Bitcoin is in the news today after its one-week realized volatility dropped to 23.42%, with the same now approaching historical lows. Over the past four years, this level has been breached only a handful of times, notably in October 2024 [22.88%] and November 2023 [21.35%].

Such low volatility has historically preceded significant market moves, making this an important metric to watch.

Bitcoin’s volatility compression – A precursor to major moves?

The realized volatility chart indicated that Bitcoin’s volatility has been steadily declining since late 2024. At the time of writing, it flashed a reading around the 23% zone. 

Historically, sharp contractions in volatility have led to major price swings on the charts, often setting the stage for breakouts.