According to BlockBeats, Bitcoin's volatility has decreased to 2.73%, following a downward trend over the past week, based on Coinglass data.
High volatility in Bitcoin is often associated with speculative trading and FOMO (fear of missing out) among retail investors. A decrease in volatility may indicate a reduction in short-term speculative activity, suggesting that the market is entering a period of consolidation or 'cooling down'.
Fluctuations in the price of Bitcoin are often linked to macroeconomic events such as inflation expectations, changes in interest rates, or geopolitical risks. When these external factors stabilize, Bitcoin's volatility tends to decrease accordingly.