š“ Bitcoin Volatility Hits Multi-Year Lows ā Are Treasury Buys Creating a Silent Storm?
Despite rising macro tensions, Bitcoin had its third least volatile H1 since 2012, indicating market resiliency.
Slowdown occurs as Bitcoin treasury businesses like Sequans raise $384 million to construct a BTC reserve.
Bitcoin (BTC) trades beyond $108,000 on Tuesday after a continuous reduction in first-half volatility, the third-lowest since 2012. The drop occurs despite publicly traded firms like Sequans Communications (SQNS) collecting $384 million to finance its Bitcoin treasury.
On Tuesday, K33 Research reported that Bitcoin's volatility dropped to its third-lowest H1 level ever, one of the calmest periods since 2012.
The leading crypto's daily volatility has been low since May 22, as implied volatility in the options market has fallen.
"BTC's general lack of direction continues to enforce a neutral directional bias in options, as skews remain near neutral across tenors," noted Vetle Lunde, K33's Head of Research.
The leading crypto asset's stability shows increased resilience despite macroeconomic upheavals. Lunde said that the S&P 500 had its second most volatile H1 during the same time, indicating a rising divergence from US markets.
Bitcoin trade volumes have slowed, indicating market stagnation. Last week's average daily volume dropped 4% to $2.1 billion.
On Tuesday, French government-backed semiconductor company Sequans Communications said that it has secured $384 million in debt and equity private placements to support its Bitcoin treasury effort.
"We believe bitcoin's unique properties will enhance our financial resilience and create long-term value for our shareholders," stated Sequans CFO Georges Karam. "Our intention is to continue acquiring bitcoin in the future, using excess cash generated from our core business operations and additional proceeds."
Sequans joins a growing list of public companies using Bitcoin as their principal treasury reserve asset to increase shareholder returns.
