The Bitcoin market has been unusually volatile lately.
The current BVIV has dipped below 45, a level that has only happened a few times in recent years. In the past, this has often preceded a sharp price increase. For example, in September 2023, Bitcoin rose by about 50% after a similar decline.
Analysts at 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 smaller fluctuations – 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 bull phase could still be in sight
The short-term active supply of BTC recently increased from 4.36 million to 4.58 million, indicating that demand for Bitcoin is growing. The market absorbed 227,000 new BTC, either through new investors or rotation by long-term holders.
