On May 12, COINOTAG reported a significant trend in the Bitcoin market. According to Coinglass data, volatility has been steadily declining over the past four days and is currently stable at 1.88%. This level is close to the latest record at the end of February, suggesting that market dynamics are changing. Typically, rising volatility indicates an increase in speculative trading, while the FOMO (fear of missing out) sentiment among retail investors also rises. Conversely, declining volatility may indicate a waning interest from short-term speculators, which could signal that the market is about to enter a consolidation phase or a brief 'cooling period'.
Additionally, the price volatility of Bitcoin is often influenced by broader macroeconomic factors, including changes in inflation expectations, adjustments in interest rates, and geopolitical tensions. As these external conditions stabilize, Bitcoin's volatility may correspondingly decrease, reflecting a more subdued trading environment.
