Recently, the Bitcoin market has been characterized by unusually low volatility.
The current value of BVIV has dropped below 45, which has only happened a few times in recent years. In the past, this situation often preceded a sharp increase in price. For example, in September 2023, after a similar drop, Bitcoin rose by about 50%.
Analysts from Ecoinometrics speculate that we may be witnessing a so-called "regime shift," where Bitcoin gradually acquires the characteristics of an asset that can generate stable returns with less fluctuation – which also attracts large institutional investors. If this phase of low volatility persists, traditional sharp movements could be delayed, but historical data suggests that a bullish phase could still be on the horizon.
Recently, there has been an increase in the volume of short-term active BTC supply from 4.36 to 4.58 million units, indicating that demand for Bitcoin is rising. The market has thus absorbed 227,000 new BTC, either due to new investors or rotation from long-term holders.
