Bitcoin Volatility Decreases, Lowest in the Last 2 Years
The BTC Volatility Index indicates that the current volatility level of Bitcoin is at 38.00. This volatility level suggests that the market anticipates Bitcoin's price will fluctuate around 38% in the next 30 days, the lowest in the last two years.
Throughout 2025, the price of Bitcoin (BTC) is expected to move within a narrow range, around US$93,000 to US$111,000, indicating a decrease in its volatility. This suggests that the market sees Bitcoin's price becoming more stable and not moving as drastically as before.
Due to the decrease in volatility, the opportunities for quick profits from short-term trading (such as arbitrage or price direction speculation) are diminishing. This is because Bitcoin is starting to be treated more like a macro asset (such as stocks or gold) rather than a speculative instrument.
This is also driven by the influx of large investors such as institutions and companies that have injected billions of dollars since early 2024. They tend to be long-term holders and implement more stable strategies such as selling call options for additional income, which also contributes to dampening price movements.