According to BlockBeats, Bitcoin's volatility is currently reported at 1.62%, after previously dropping to 1.45%. Over the past two months, Bitcoin has traded within a narrow range of $93,000 to $111,000, contrasting sharply with its historical price movements. Market analysts attribute the decline in volatility to several factors, notably the increase in the sale of call options by Bitcoin holders. Despite the reduced volatility, the perpetual contract funding rate for Bitcoin remains positive, indicating sustained bullish sentiment in the market.
BlockBeats notes that high Bitcoin volatility is often associated with speculative trading and retail FOMO (fear of missing out). A decrease in volatility may suggest a reduction in short-term speculators, leading to a consolidation or "cooling-off" period in the market. Additionally, Bitcoin's price fluctuations are frequently linked to macroeconomic events such as inflation expectations, interest rate changes, or geopolitical risks. When these external factors stabilize, Bitcoin's volatility may also decrease.
