Bitcoin's Volatility Index currently sits at 38.00, indicating the market expects Bitcoin's price to fluctuate around 38% over the next 30 days. This is its lowest level in two years.
Throughout 2025, Bitcoin's price has largely traded within a narrow range of approximately $93,000 to $111,000, confirming its decreasing volatility. This suggests the market now perceives Bitcoin as a more stable asset, less prone to extreme price swings.
The reduced volatility translates to fewer opportunities for quick profits from short-term trading strategies like arbitrage or directional speculation. Bitcoin is increasingly being treated as a macro asset, similar to stocks or gold, rather than purely a speculative instrument.
This trend is partly driven by the entry of large institutional investors and corporations, who have poured billions of dollars into the market since early 2024. These entities typically act as long-term holders and engage in more stable strategies, such as selling call options for additional income, which further dampens price movements.