According to BlockBeats, Bitcoin's volatility has decreased to 1.62%, marking a week of slight fluctuations.
Bitcoin's high volatility is often linked to speculative trading and retail investor FOMO (fear of missing out). A decline in volatility may indicate a reduction in short-term speculative activity, suggesting the market is entering a consolidation or "cooling-off" period.
Additionally, Bitcoin price fluctuations are frequently associated with macroeconomic events such as inflation expectations, interest rate changes, or geopolitical risks. When these external factors stabilize, Bitcoin's volatility tends to decrease accordingly.