According to BlockBeats, data from Coinglass indicates that Bitcoin's volatility has decreased for two consecutive days, now standing at 2.54%.
High Bitcoin volatility is often associated with speculative trading and retail investor FOMO (fear of missing out). A decline in volatility may suggest a reduction in short-term speculative activity, leading to a market consolidation or 'cooling-off' period. Additionally, Bitcoin 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 tends to decrease accordingly.